Dangote Petroleum Refinery has increased the gantry prices of petrol and diesel to ₦1,275 and ₦1,950 per litre, respectively, citing rising global crude oil prices driven by geopolitical tensions in the Middle East.
A senior official of the refinery confirmed the adjustment on Tuesday night, stating that the price changes reflect prevailing international crude oil benchmarks and market realities.
According to the new pricing template, petrol rose by ₦75 per litre—from ₦1,200 to ₦1,275—representing a 5.02 per cent increase, while diesel jumped by ₦200 per litre, from ₦1,750 to ₦1,950.
“The adjustment is in line with global market trends,” the official said, adding that ongoing tensions in the Middle East have significantly impacted crude oil prices.
“These are external factors that directly influence refined product pricing,” the official noted, explaining that petrol recorded a moderate increase. At the same time, diesel rose more sharply due to stronger cost pressures.
Global market pressures
The price hike comes amid escalating geopolitical tensions, particularly following the US-Israel strikes on Iran in February 2026, which have disrupted global oil supply chains and driven up crude prices.
Analysts say volatility in global oil markets—especially in the Middle East, a key oil-producing region—continues to influence refined petroleum product pricing worldwide.
Market data from Petroleumprice.ng corroborated the increase, confirming the 5.02 per cent rise in petrol prices at the gantry level.
Industry observers warn that the increase could trigger a fresh wave of pump price hikes nationwide, as marketers are likely to pass the additional costs on to consumers.
The development comes at a time when expectations were high that increased local refining capacity would help stabilise fuel prices in Nigeria.
However, analysts note that despite domestic refining, Nigeria remains exposed to global oil price fluctuations due to its reliance on international crude benchmarks.
Pricing dynamics
Nigeria operates a deregulated downstream oil sector, where fuel prices are largely determined by market forces rather than direct government control.
This means that global crude prices, exchange rates, logistics costs, and refinery operations influence local fuel prices.
Experts say that as long as crude oil pricing remains tied to international benchmarks, domestic fuel prices will continue to fluctuate in response to global developments.
Economic concerns
The latest increase has heightened concerns about affordability, as consumers and businesses already grapple with high transportation and energy costs.
With diesel prices nearing ₦2,000 per litre, stakeholders warn of higher production and logistics costs, which could further drive inflation and slow economic recovery.
The refinery’s price adjustment underscores the broader challenge of balancing domestic refining ambitions with exposure to global market forces.
Background
The Dangote refinery, Africa’s largest with a capacity of 650,000 barrels per day, was established to reduce Nigeria’s dependence on imported fuel and stabilise domestic supply.
However, global supply disruptions and pricing structures tied to international crude markets have continued to influence local fuel costs, limiting the immediate impact of domestic refining on price stability.
The price hike signals continued pressure on Nigeria’s energy market, with consumers likely to face higher fuel costs in the near term.
While increased local refining may improve fuel availability, sustained global volatility and market-driven pricing could delay significant relief at the pump.
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