Lagos, January 27, 2026 – The Dangote Petroleum Refinery and Petrochemicals has implemented a significant upward adjustment in the price of Premium Motor Spirit (PMS), commonly known as petrol, raising its ex-gantry price by N100 per litre to N799 from the previous N699. This change, announced in a statement released on Monday, translates to a retail price of N839 per litre at partner outlets such as MRS Oil Nigeria Plc, up from N739 per litre maintained since mid-December 2025.
The refinery explained that the adjustment follows the conclusion of the festive period, during which it provided temporary price support to cushion Nigerians against higher costs amid holiday spending pressures. "With the festive period concluded, PMS prices have been modestly realigned to sustainable levels to support long-term market stability and affordability," the statement read. "Under the current alignment, the PMS gantry price is N799 per litre, while MRS retail outlets are selling at N839 per litre."
This move ends a short-lived price intervention introduced in December 2025, when refinery President Aliko Dangote pledged to maintain petrol at no more than N740 per litre nationwide, specifically targeting N739 at MRS stations. At the time, Dangote emphasized the refinery's commitment to edging out expensive importers and ensuring affordability, stating, “We don’t want people to sell petrol for more than N740 nationwide.” The temporary reduction, which saw gantry prices drop from around N828 to N699 in late 2025, was part of efforts to stabilize the market post-fuel subsidy removal and amid competition from imported petrol.
The latest increase is expected to ripple through the downstream sector, prompting adjustments by other marketers and independent operators. As of Monday night, retail filling stations nationwide—including those under the Nigerian National Petroleum Company Limited (NNPCL)—were dispensing petrol at prices ranging from N805 to N830 per litre, reflecting a mix of Dangote-sourced product and imported volumes. The new pricing structure is anticipated to push pump prices closer to or above N840 in many locations, depending on transportation costs, taxes, and dealer margins.
The price revision comes against the backdrop of operational challenges at the 650,000-barrel-per-day refinery, Africa's largest single-train facility. Global commodities intelligence firm Kpler reported that the refinery has faced prolonged downtime at its Residual Fluid Catalytic Cracker (RFCC), a critical 200,000-barrel-per-day unit responsible for converting heavier residues into high-value gasoline and other lighter products. The RFCC has experienced repeated outages since April 2025, with a major shutdown extending from December 2025 into early 2026, originally scheduled to restart around February 1 but potentially delayed further.
To mitigate supply shortfalls and sustain output during this period, Dangote has shifted to processing lighter crude grades (API gravity around 37–39) since late 2025, preserving operations in secondary units such as the Continuous Catalytic Reformer, isomerization, and hydrocracking. Additionally, the refinery has imported gasoline blending components at an estimated rate of around 45,000 barrels per day in January 2026 to boost volumes and maintain domestic supply levels. Kpler's analysis indicates that these imports have helped offset reduced internal gasoline production, which has been capped during the RFCC outage.
Despite these constraints, the refinery continues to supply approximately 50 million litres of PMS daily to the Nigerian market, with evacuation and distribution proceeding normally across the country. Chief Executive Officer David Bird reaffirmed the facility's dedication to uninterrupted nationwide supply and market stability. The refinery's efforts have positioned it as a key player in reducing Nigeria's reliance on imported petrol, which previously dominated consumption following the full deregulation of the downstream sector in 2023.
The price adjustment has drawn mixed reactions. Consumer groups and transport unions have expressed concerns over the potential impact on transportation costs, food prices, and inflation, given petrol's central role in Nigeria's economy. The Central Bank of Nigeria projected earlier in January that pump prices could hover around N905–N950 per litre in 2026 under baseline assumptions of crude oil prices around $55 per barrel and exchange rate dynamics. Dangote has previously warned that without domestic refining capacity, reliance on imports could drive prices as high as N1,400 per litre in a fully deregulated environment.
Industry observers note that the increase reflects a return to more market-aligned pricing after the festive subsidy-like measure, which involved the refinery absorbing significant costs. The move may also aim to restore profitability amid rising global crude prices and operational expenses. Brent crude has fluctuated in recent months, influencing import parity costs that serve as a benchmark for local pricing.
As Nigeria continues its transition toward greater self-sufficiency in refined products—bolstered by the Dangote facility's ramp-up since full operations began in late 2024—the pricing dynamics underscore ongoing challenges. These include technical hurdles, crude supply arrangements, foreign exchange availability for imports, and competition between domestic production and imported volumes. The refinery's actions are closely watched, as they influence inflation, commuter affordability, and broader economic stability in Africa's largest economy.
With the new prices taking effect, motorists and businesses are bracing for adjustments in daily expenses. The federal government, through agencies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), continues to monitor supply and pricing to prevent hoarding or artificial scarcity. Stakeholders anticipate further market responses in the coming days as the adjustment filters through the supply chain.
