Nigeria’s energy sector has been thrown into fresh turmoil following the announcement of a significant ex-depot price increase by Dangote Petroleum Refinery. The refinery has raised its Premium Motor Spirit (PMS) rate to ₦880 per litre—an upward adjustment of ₦55 from the previous ₦825/litre. Confirmed by real-time fuel rate tracker petroleumprice.ng and substantiated by a Pro Forma Invoice obtained by The PUNCH, this price revision is fueling widespread concern over an imminent nationwide petrol price hike.
As Nigeria’s most prominent private refinery, Dangote Refinery has long been seen as a potential stabilizer in the country’s volatile fuel market. With its enormous processing capacity and modern infrastructure, it was expected to help reduce dependency on imported fuel and stabilize local pricing. However, this latest move has triggered skepticism about the refinery’s ability—or willingness—to shield consumers from pricing volatility.
The economic ripple effects of this price surge are already a topic of heated discussion among stakeholders. A hike in ex-depot prices typically translates to an increase at the pump. If realized, this would sharply raise transportation costs and ultimately elevate the prices of goods and services across the board. With inflation already burdening Nigerian households, a petrol price increase would further diminish the purchasing power of millions.
This development arrives at a critical time. Nigeria is still navigating the aftershocks of a post-pandemic economy while contending with broader structural issues such as unemployment, insecurity, and a weakened currency. According to analysts, a petrol price hike under these conditions could place even more strain on households and small businesses still recovering from past economic shocks.
Industry experts have voiced concern over the refinery’s pricing strategy. “This increase suggests that Dangote Refinery may not be as committed to market stabilization as initially promised,” noted an oil sector analyst who requested anonymity. “If this continues unchecked, the price at the pump could escalate rapidly, triggering another round of inflation.”
Nigeria's dependence on oil as a primary economic driver leaves the country especially vulnerable to shocks within the energy sector. Policymakers are now faced with a critical decision—intervene to manage the market or allow deregulated pricing to run its course. With the nation’s economic outlook hanging in the balance, the implications of inaction could be severe.
The sudden spike in ex-depot pricing serves as a stark reminder of the fragility of Nigeria’s fuel pricing system. As concerns deepen over affordability and economic stability, pressure is mounting on the government to act swiftly to prevent a broader economic fallout.