Reported by: Ijeoma G | Edited by: Henry Owen
Nigeria’s Dangote Petroleum Refinery & Petrochemicals has announced a significant adjustment in petrol pricing, increasing the ex-depot (gantry) price of Premium Motor Spirit (PMS) from ₦699 per litre to ₦799 per litre, a move that is expected to translate into higher pump prices nationwide. The revised pricing was communicated by the refinery in a statement released on Monday, 26 January 2026.
According to the statement, the price realignment comes in the wake of the conclusion of the festive period during which the refinery had temporarily lowered prices to cushion consumers amid heightened seasonal spending. Dangote Refinery said it “modestly realigned” PMS pricing to “sustainable levels” to support long-term market stability and affordability, emphasising that the prior reduction was a deliberate price support intervention.
Under the new structure, the refinery’s major retail partner — MRS Oil & Gas — has confirmed that its stations will dispense petrol at ₦839 per litre, up from previous prices that hovered in the low ₦700s. The increase reflects both the adjustment at the gantry and downstream distribution costs, signalling a new baseline for retail petrol pricing across Nigeria’s deregulated downstream sector.
Dangote’s Chief Executive Officer, David Bird, reiterated the company’s commitment to ensuring consistent nationwide fuel supply, noting that the refinery continues to supply approximately 50 million litres of petrol daily. In its statement, the firm explained that while the festive period pricing was intended to mitigate consumer burden, market realities necessitated a return to higher rates to sustain operations without compromising supply continuity.
The refinery also acknowledged that many retail outlets failed to pass on the earlier reduced pricing to consumers during the holiday period, a gap it said limited the intended economic relief. By readjusting prices after the festive period, the company aims to align wholesale and retail pricing more closely with operational and logistics costs borne by the refinery and its partners.
The move has drawn attention across the oil and gas sector, where petrol pricing in Nigeria remains fully deregulated. Under the current framework, refiners and marketers determine prices based on supply contracts, logistics costs, foreign exchange dynamics and broader market conditions rather than government mandates. Dangote’s pricing decisions are followed closely by stakeholders because of the refinery’s dominant role in domestic fuel distribution, particularly since it began ramping up output and reducing dependence on imported refined products. Analysts say that while local refining capacity has helped stabilise supply, pump prices are still sensitive to underlying economic variables, including crude cost, exchange rate volatility and transportation expenses.
Consumers and industry observers are already assessing the likely impact of the new pricing structure on daily living costs. Petrol remains a critical input for transportation, commercial logistics and agricultural operations, meaning that any sustained rise in fuel prices can ripple through the economy, exerting upward pressure on transportation fares, food prices and general cost of living. The broader macroeconomic environment — including currency performance and global crude price movements — may further influence future adjustments by both the Dangote Refinery and other marketers.
In recent months, fuel pricing in Nigeria has experienced fluctuations. In December 2025, Dangote and its distribution partners had introduced lower retail prices at MRS stations nationwide, selling petrol at around ₦739 per litre as part of a nationwide pricing initiative. That campaign was geared toward easing the financial burden on consumers and was welcomed by industry stakeholders at the time.
The latest price adjustment comes at a time when Nigeria’s downstream petroleum sector continues to evolve following the full operationalisation of the Dangote Refinery — Africa’s largest single-train facility with an output capacity of 650,000 barrels per day. The refinery was expected to transform the energy landscape by reducing import dependency and stabilising fuel supply; however, price volatility persists amid broader economic pressures.
Government regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), maintain that market forces should drive fuel pricing under deregulation, with their role focusing on oversight and ensuring fair competition. In past statements, regulators have emphasised that while local refining enhances supply security, pricing decisions rest with market actors including refiners and marketers.
As Nigerians adjust to the revised petrol price structure, motorists and businesses alike are watching closely for further shifts. Given the centrality of fuel costs to inflationary trends and economic activity, the pricing decision by Dangote Refinery is expected to remain a key reference point in discussions on energy pricing, inflation management and cost-of-living pressures in Nigeria.
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