Dangote Refinery restarts gasoline distribution, pricing fuel in local currency at N1,215 per liter

Dangote Petroleum Refinery has restarted loading petrol, also known as Premium Motor Spirit (PMS), in the local currency, naira, after a brief suspension, thereby ending the uncertainty that had gripped the downstream sector due to its temporary shift to dollar-denominated sales.

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The refinery's ex-depot price has been set at N1,215 per litre, marking a N140 per litre increase, or 13.02 per cent rise, from the previous price of N1,075 per litre, according to findings by Vanguard.

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This price adjustment is directly tied to the significant surge in global crude oil prices, which has driven up the cost of producing refined petroleum products, including petrol, diesel, and aviation fuel, sparking concerns about potential fuel price hikes in Nigeria and other oil-importing countries.

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On Wednesday, market data revealed that Brent crude, the international benchmark for Nigeria's crude, climbed 3.18 per cent to $93.90 per barrel, while West Texas Intermediate (WTI) rose 2.74 per cent to $86.65 per barrel.

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The price increase comes at a time when domestic petrol prices have already risen sharply due to increases in ex-depot prices by major suppliers, fuelling fears of another round of pump price increases at filling stations.

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The resumption of naira-denominated truck loading is expected to improve product availability after supply disruptions caused by the suspension, with industry sources confirming that marketers have been notified of the resumption of gantry operations.

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Loading is set to commence immediately under the revised naira pricing structure, following some days of uncertainty in the downstream petroleum market after the suspension forced many independent marketers to source products from private depots.

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Dangote Refinery had halted product loading due to challenges in securing adequate crude oil supplies under the Federal Government's naira-for-crude initiative, prompting its temporary switch to dollar-denominated sales.

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The refinery's decision to restore naira transactions is expected to ease supply constraints in the inland market and improve the nationwide distribution of petroleum products.

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Petrol prices at depots across Nigeria recorded fresh increases on Wednesday, with diesel prices surging sharply in several locations, indicating renewed cost pressures for fuel marketers and transport operators.

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Mid-day depot price data for July 22, 2026, showed that petrol depot prices rose across major supply hubs, including Lagos, Port Harcourt, Warri, and Calabar, with some depots increasing prices by as much as N87 per litre.

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The sharpest increase was recorded at Bulk Strategic Reserve in Lagos, where the ex-depot petrol price jumped by N87 per litre to N1,350, from N1,263.

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This increase positions the depot among the highest-priced suppliers in the country and could influence retail pump prices if sustained, while other Lagos depots posted more modest increases.

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Liquid Bulk, Masters Energy, Matrix, and Sigmund all raised petrol prices by between N15 and N17 per litre to N1,280, while TSL did not quote a new price.

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Fresh increases in the pump price of petrol, to an average of N1,350 per litre, from N1,260 per litre, across filling stations in Lagos and its environs, have heightened concerns over the rising cost of living.

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Millions of Nigerians are expected to face higher transportation, food, and business costs, as several retail outlets adjusted their pump prices to between N1,300 per litre and N1,400 per litre following increases in ex-depot prices by depot owners, pushing fuel costs to their highest levels in recent months.