Fuel Shockwave: Dangote Refinery Hikes Petrol Price to N880, Nigerians Brace for N1,000 Per Litre!
Another jolt has hit the Nigerian fuel market! The Dangote Petroleum Refinery has significantly increased its ex-depot price for Premium Motor Spirit (PMS), commonly known as petrol, to a staggering N880 per litre. This N55 jump from the previous N825 per litre rate, which took effect around Friday, June 20, 2025, is already sending ripple effects across the nation, pushing pump prices dangerously close to the N1,000 mark in some areas.
Your Wallet: Feeling the Pinch
The immediate consequence of Dangote's price adjustment has been a swift surge in pump prices at filling stations nationwide. While the refinery's ex-depot price sits at N880, consumers are now facing retail prices ranging from N910 to N925 per litre in Lagos. The situation is even more dire in northern states like Kano and Abuja, where reports indicate prices soaring to N955 and N960 per litre respectively, edging ever closer to that daunting N1,000 threshold.
It's not just Dangote-affiliated stations feeling the pressure. Other major and independent marketers, including NNPC Retail outlets, have swiftly followed suit, adjusting their prices upwards. NNPC Retail, for instance, which previously sold at N870 per litre, is now selling at N910.
Why the Jump? Geopolitics and Operational Costs
Several factors are being cited for this latest hike:
* Global Crude Surge: The primary culprit appears to be the rising cost of crude oil in the international market, heavily influenced by escalating geopolitical tensions, particularly between Iran and Israel. Global petrol pricing remains tethered to these volatile international crude rates.
* Refinery Economics: Reports also highlight Dangote Refinery's operational costs and an increased reliance on imported US crude. When coupled with Nigeria's fluctuating exchange rates, these factors put significant upward pressure on the refinery's pricing.
* Market Forces: With the downstream petroleum sector largely deregulated since the removal of fuel subsidies, market forces dictate prices, and the refinery's decision reflects broader supply-and-demand dynamics aiming for full cost recovery.
The Road Ahead: Hardship and Monopoly Fears
This latest fuel price increase has ignited fresh widespread concerns among Nigerians.
* Eroding Incomes: For many, the hike further erodes the purchasing power of their incomes. Senior civil servants are already lamenting that the new petrol prices will make the N70,000 minimum wage even less adequate.
* Cost of Living Spiral: Increased transportation costs directly translate to higher prices for goods and services, exacerbating the already challenging cost of living crisis gripping the nation.
* Monopoly Concerns: Alarm bells are ringing for some industry stakeholders. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced worries that Dangote Refinery's "forward integration" strategy, where it directly supplies its own retail outlets, could inadvertently lead to a "monopoly in disguise." This, they fear, could jeopardize countless jobs within the downstream sector.
While some analysts suggest Dangote's new price might still be competitive compared to other ex-depot sources, the overarching sentiment is clear: Nigerians must brace themselves for the possibility of further price increases if international crude oil prices continue their upward trajectory.
This development from the Dangote Refinery is a stark reminder of the volatility in Nigeria's fuel market and its profound, immediate impact on the daily lives and economic stability of every citizen.
