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Dangote Refinery, the $20 billion oil processing facility owned by Africa’s richest man, Aliko Dangote, has raised the gantry price of Premium Motor Spirit (PMS), commonly known as petrol, by more than 14 percent, as global crude oil prices climbed sharply following supply disruptions in the United States.
Dangote raises PMS amid crude rally
The price adjustment comes as Brent crude futures settled up $1.98, or nearly 3 percent, at $67.57 a barrel, while U.S. West Texas Intermediate crude gained $1.76 to close at $62.39 a barrel. The rally was driven largely by a severe winter storm that knocked out significant crude production across parts of the U.S., tightening short-term supply in global markets.
Against this backdrop, Dangote Refinery said it has modestly realigned PMS prices to levels it considers sustainable, citing the need to support stable supply and maintain affordability across the domestic market. The company said the move reflects prevailing global energy conditions and is aimed at ensuring uninterrupted nationwide distribution.
Under the revised pricing structure, the PMS gantry price now stands at N799 ($0.56) per liter, while petrol is retailing at N839 ($0.59) per liter at MRS outlets. This is a 14 percent increase from the previous pump price of N739 ($0.52) per liter. Before the adjustment, the refinery’s gantry price was N699 ($0.49) per liter, with the N739 pump price introduced ahead of the last Yuletide season.
Dangote refinery lifts prices, sustains supply
Ahead of the 2025 Christmas period, Dangote had announced a nationwide price reduction to N739 per liter, a move that was widely seen as an effort to ease pressure on consumers during the holiday season. The latest increase effectively reverses that cut, reflecting shifts in international oil markets since then.
Dangote Petroleum Refinery Chief Executive Officer David Bird said the facility continues to supply the local market with about 50 million liters of PMS daily, adding that distribution and evacuation across the country remain normal.
He said the refinery’s operational design allows it to process a broad range of crude oil and intermediate feedstocks, helping it maintain output even during scheduled maintenance. “This flexibility ensures domestic supply remains stable and uninterrupted,” Bird said, emphasizing the refinery’s ability to keep fuel flowing despite operational or market challenges.
Supply outages, geopolitics lift oil
The surge in crude prices in recent times has been supported in recent days by supply losses in the United States, where producers were forced to shut in as much as 2 million barrels per day, or about 15 percent of national output, over the weekend due to the storm. U.S. Gulf Coast crude exports were also halted temporarily, according to traders and analysts.
Geopolitical tensions have added to the upward pressure. Strained relations between the United States and Iran, combined with uncertainty over a possible Ukraine-Russia peace agreement, have kept oil prices elevated. President Donald Trump said last week that the U.S. has an “armada” moving toward Iran, while a U.S. aircraft carrier and supporting warships have arrived in the Middle East, expanding Washington’s military presence in the region.
