Dangote Petroleum Refinery has resumed the sale of Premium Motor Spirit (PMS) in naira, bringing to an end a week-long suspension that had unsettled Nigeria’s downstream petroleum market. However, the return to naira-denominated transactions comes with a significantly higher ex-depot price, raising expectations of another increase in retail fuel prices nationwide.
The refinery has fixed its new gantry price at ₦1,215 per litre, up from the previous ₦1,075 per litre, an increase of ₦140, or just over 13 per cent. Industry observers attribute the adjustment to rising international crude oil prices, which have increased the cost of refining petroleum products.
Global oil markets continued their upward trend on Wednesday, with Brent crude climbing to $93.90 per barrel and West Texas Intermediate (WTI) rising to $86.65 per barrel. The rally has heightened production costs for petrol, diesel and aviation fuel, placing additional pressure on fuel prices in Nigeria.
The refinery’s decision to resume truck loading in naira is expected to restore stability to product supply after marketers were forced to rely on private depots during the suspension. Industry sources confirmed that petroleum marketers had been notified of the resumption of gantry operations, with loading commencing immediately under the revised pricing structure.
Dangote Refinery had previously suspended naira sales, citing difficulties in securing sufficient crude oil under the Federal Government’s naira-for-crude arrangement. The temporary disruption prompted a shift to dollar-denominated transactions, creating uncertainty across the downstream sector and tightening domestic fuel supply.
Although the return to naira sales is expected to improve product availability, the higher ex-depot price has already begun to ripple through the market. Depot prices increased across major supply centres, including Lagos, Port Harcourt, Warri and Calabar, with some operators recording substantial price adjustments.
The steepest increase was reported at the Bulk Strategic Reserve depot in Lagos, where the ex-depot price surged by ₦87 to ₦1,350 per litre, making it one of the country’s highest-priced suppliers. Other Lagos depots, including Liquid Bulk, Masters Energy, Matrix and Sigmund, also adjusted prices upward to around ₦1,280 per litre.
The impact has quickly filtered through to retail outlets. Filling stations across Lagos and surrounding areas have raised pump prices to between ₦1,300 and ₦1,400 per litre, with the average selling price now around ₦1,350, compared with approximately ₦1,260 previously.
The latest increases are expected to intensify concerns over inflation and the rising cost of living, as higher fuel prices typically translate into increased transportation fares, food prices and operating costs for businesses. While the resumption of naira sales may ease supply constraints, consumers are likely to continue bearing the burden of higher energy costs if global crude prices remain elevated.
