Business
Dangote Refinery Raises Petrol Price Again as Global Shipping Costs Bite
Dangote Refinery Raises Petrol Price Again as Global Shipping Costs, Crude Surge Bite
By Mena Ikuku, Waterways News Correspondent
Nigeria’s Dangote Petroleum Refinery has announced another upward revision of its Premium Motor Spirit (PMS) pump-gate price, blaming escalating global geopolitical tensions and surging crude oil costs for the adjustment — a move analysts warn will ripple through freight, logistics, and consumer prices nationwide.
In a notice dispatched to petroleum marketers late Friday, the Lekki-based refinery said its ex-depot (gantry) price would climb from ₦1,175 to ₦1,245 per litre, while the coastal price rises from ₦1,512,648 to ₦1,606,518 per metric tonne. The new pricing took effect from midnight, March 21, 2026.
Market Forces Beyond Refinery’s Control
The refinery attributed the revision squarely to global market dynamics, noting that fluctuations in crude oil prices and elevated shipping and freight costs lie outside its operational control. The explanation mirrors concerns raised by the International Maritime Organization (IMO) and regional shipping bodies, which have repeatedly flagged how tensions in key oil-producing and maritime corridors — particularly the Middle East — are inflating both crude benchmarks and vessel operating costs.
Freight rate volatility on key trade lanes serving West Africa has already been a concern for Nigerian importers and logistics operators in recent months, and the latest Dangote adjustment underscores how directly international maritime market conditions translate into domestic energy pricing.
Marketers Given Short Grace Window
Marketers with pre-existing supply arrangements backed by valid bank guarantees will be permitted to lift products at the previous rates, provided their guarantees cover the applicable price differential. However, the refinery stipulated that the cost difference will be debited to marketers’ trading accounts, with evidence of payment required by March 23 — leaving the industry a narrow two-day adjustment window.
Pump Price Hike Expected Across the Country
Industry analysts widely expect the increase to cascade into higher retail pump prices, as petroleum marketers are likely to transfer the additional cost burden to end-consumers. Transporters, haulage operators, and logistics firms — key players in Nigeria’s supply chain — are expected to feel the pressure acutely, with knock-on effects anticipated for the movement of goods and commodities across the country.
Nigeria Watch
For Nigeria’s maritime and logistics sector, the Dangote refinery pricing signal carries significance beyond the filling station. The refinery was positioned as a structural solution to Nigeria’s chronic fuel supply volatility and dependence on imported PMS — but the latest hike illustrates that even domestic refining capacity cannot fully insulate the market from the global maritime freight environment.
Rising crude prices and shipping cost inflation — driven by tensions in the Strait of Hormuz and Red Sea trade disruptions — continue to set the floor for energy costs in Nigeria. Port operators, inland waterways transporters, and vessel operators who rely on PMS and marine gas oil (MGO) should factor this pricing trajectory into operational planning. With freight costs globally under upward pressure, further revisions from the Dangote refinery in the near term cannot be ruled out.