Aliko Dangote

Author: Gist Correspondent

The Dangote Petroleum Refinery has increased the gantry prices of petrol and diesel, intensifying cost pressures on consumers and businesses across Nigeria.

A senior official at the refinery confirmed the adjustment on Tuesday, attributing the decision to rising international crude oil prices and prevailing global market conditions.

Under the new pricing structure, petrol now sells at N1,275 per litre, reflecting an increase of N75 or about 5.02 per cent. Diesel witnessed a steeper rise, climbing by N200 to N1,950 per litre.

The latest adjustment represents a notable jump from last month’s rates of N1,200 per litre for petrol and N1,750 per litre for diesel. Analysts warn that diesel prices may soon cross the N2,000 per litre threshold, further escalating operational costs across key sectors of the economy.

According to the refinery official, the price changes are directly linked to global oil market dynamics, particularly ongoing geopolitical tensions in the Middle East, which continue to influence crude oil benchmarks.

“Petrol has been adjusted upward by N75 per litre, while diesel has seen a more significant increase of N200. These reflect international pricing realities,” the source stated.

Industry data from Petroleumprice.ng confirmed the increase, noting that the new petrol price represents a 5.02 per cent rise at the gantry level.

The development comes amid expectations that increased domestic refining capacity would help stabilise fuel prices. However, Nigeria remains vulnerable to global oil price fluctuations due to its reliance on international benchmarks for determining local prices.

Marketers are expected to adjust pump prices in response to the hike, potentially triggering a fresh round of increases nationwide in the coming days.

Global oil markets have remained volatile in recent weeks, largely driven by heightened tensions in the Middle East—a region responsible for a substantial share of global crude supply. Any perceived disruption to supply routes typically leads to price surges that ripple across refined petroleum markets.

Despite being a major oil-producing nation, Nigeria operates a deregulated downstream sector where fuel prices are largely dictated by market forces, including exchange rates, logistics costs, and crude oil pricing.

Although the Dangote Petroleum Refinery was expected to reduce dependence on fuel imports and stabilise local prices, experts argue that domestic pricing will continue to mirror global trends as long as crude oil remains tied to international benchmarks.

The latest hike has also heightened concerns over affordability, with households and businesses already grappling with rising energy and transportation costs.

Economists warn that sustained increases in fuel prices could further drive inflation and slow Nigeria’s economic recovery.