The Dangote Petroleum Refinery has adjusted its ex-depot price for petrol back to 1,175 Naira per litre, a move that led many depot operators to immediately halt sales. This increase comes just three days after the refinery had lowered the price to 1,075 Naira per litre on March 10, 2026.
Following the initial price cut, depots had been selling the product for approximately 1,100 Naira per litre. The sudden return to the previous higher rate has caused a pause in transactions as operators look to protect their margins and recalculate their own market prices.
Sources at the refinery noted that loading was briefly suspended to update operational systems and reconcile stock with the new pricing.
The primary driver behind this shift appears to be the international oil market. Global Brent crude prices recently jumped from 91 dollars to nearly 100 dollars per barrel. Because crude is the main raw material for the refinery, this surge has significantly pushed up production costs.
Experts suggest that if global crude prices stay at this elevated level, Nigerians may soon see further increases at retail fuel stations across the country.
The primary driver behind this shift is the volatile international oil market. Global Brent crude prices recently jumped from 91 dollars to nearly 100 dollars per barrel, with some reports even showing spikes as high as 110 dollars. This rally is largely due to the escalating conflict in the Middle East involving the United States, Israel, and Iran, which has sparked fears of a full blockade of the Strait of Hormuz, a waterway through which 20% of the world’s oil flows.
Despite the “Naira-for-Crude” agreement with the Nigerian government, the refinery’s management has clarified that they do not receive discounted crude. They purchase Nigerian crude at international benchmark prices, and because domestic upstream producers have often failed to meet the required volumes, the refinery frequently has to source additional crude from international traders at even higher premiums.
For March 2026, the refinery reportedly required 13 cargoes to meet domestic demand but received significantly fewer from local sources, forcing a reliance on expensive imports.
