The Dangote Petroleum Refinery & Petrochemicals has adjusted its gantry price for Premium Motor Spirit (PMS), commonly known as petrol, to N799 per litre. Consequently, MRS retail outlets have raised their pump prices to N839 per litre, up from the N739 per litre maintained during the December period.
The $20 billion refinery complex clarified that the lower rates seen over the last month were part of a deliberate and temporary price support intervention specifically designed to ease the financial burden on Nigerian households during the Christmas season.
Despite the N100 increase, the refinery’s leadership maintains that supply remains robust. David Bird, the Chief Executive Officer of Dangote Petroleum Refinery , confirmed that the facility continues to inject significant volume into the Nigerian economy. “The refinery continues to supply the domestic market with approximately 50 million litres of petrol daily, with nationwide evacuation and distribution operating normally,” Bird stated.
He further noted that the facility’s technical infrastructure is built to withstand operational shifts without halting supply. “The refinery’s design flexibility allows it to process a wide range of crude and intermediate feedstocks, enabling continued fuel supply during planned maintenance activities,” Bird explained, adding that this specific capability ensures that the domestic supply remains stable and uninterrupted.
The price adjustment follows a period of technical transition at the plant. Dangote Refinery recently turned to gasoline imports to maintain its market obligations while its Residual Fluid Catalytic Cracker (RFCC), a critical secondary conversion unit that converts heavy oil into lighter products like petrol underwent downtime.
The hike marks a departure from earlier projections. In December, Aliko Dangote, President of the Dangote Group, had indicated that the N739 retail price would be a strategic tool to stabilize the market. “Our N739 per litre retail fuel price will persist nationwide to edge out importers,” Aliko Dangote had stated last year.
However, the move to N839 has reignited friction within the downstream sector. The Petroleum Retail Owners Association of Nigeria (PETROAN) has previously expressed concerns regarding the refinery’s pricing power. The association argued that Dangote’s fluctuating market influence was disrupting importers who had imported at a higher cost to close demand gaps in the petroleum downstream market.
As of Monday night, retail stations operated by the Nigerian National Petroleum Company Limited (NNPCL) were dispensing fuel at rates between N805 and N830 per litre. Market analysts suggest that this latest hike by the Dangote Refinery may trigger a fresh wave of price increases across other independent retail outlets nationwide.
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