Pricing Hike and Local Currency Sales Rekindle Uncertainty in Nigerian Fuel Market

Dangote Refinery has raised the price of Premium Motor Spirit (PMS) to N1,215 per litre, up from N1,175. The company has resumed selling its refined petroleum products in naira after a brief suspension on July 14, 2026. This move impacts fuel marketers and consumers nationwide.

According to reporting by Daily Post Nigeria, the increased price is expected to affect retail prices too, which currently stand between N1,270 and N1,350 per litre in Abuja and its environs. The last increase in prices resulted from Dangote's decision to resume sales to off-takers in dollars.

Pricing Increase

The new price represents a N40 increase from the previous rate of N1,175 per litre. This reflects higher costs for fuel production and transportation. Although the move aims to stabilize local currency transactions, it has created uncertainty within the country's downstream oil sector.

Impact on Retail Prices

Depot owners and marketers have been increasing prices at least twice over the past week due to supply chain disruptions. The new price from Dangote could lead to further increases across the board, affecting everyday drivers and businesses that rely on fuel.

Market Reactions

The response from stakeholders ranges from cautious optimism to concerns about long-term effects. Some marketers see this as a sign of improved economic activity, while others fear it may exacerbate inflationary pressures in Nigeria’s economy.

Frequently Asked Questions

What is the new price of Premium Motor Spirit (PMS) from Dangote Refinery?

The gantry price for PMS has been fixed at N1,215 per litre.

Why did Dangote Refinery resume sales in naira after a dollar-based sale?

To avoid fluctuating global currency rates and provide more stability to local markets. However, it also reflects the company's increased costs.

How will this affect retail fuel prices in Nigeria’s major cities?

Retail fuel prices are expected to increase as marketers adjust their rates based on Dangote’s new price point.