The premium motor spirit (PMS) ex-gantry price increases by ₦85/litre, moving Dangote above key landing-cost benchmarks and tightening pricing options for depot owners and marketers as crude oil rally continues.
By Anita Babalola
LAGOS, Nigeria — Dangote Petroleum Refinery has increased its Premium Motor Spirit (PMS) gantry price to ₦1,350 per litre, raising expectations of further upward pressure on petrol prices across Nigeria’s downstream market.
The adjustment, which local fuel-tracking platforms report as an ₦85/litre increase, comes amid rising global crude oil prices and higher petroleum product replacement costs.
Fresh ₦85/litre Increase Moves PMS Gantry Price to ₦1,350
Market reports indicate Dangote Refinery raised its PMS ex-gantry price from ₦1,265 to ₦1,350 per litre.
According to fuel-price analysts cited by industry trackers, the new figure represents a 6.7% increase and is expected to influence pricing decisions for depots and independent marketers who source products from the refinery.
New Dangote Price Surpasses PMS Landing-Cost Benchmark
Operators say the latest Dangote price is now above the PMS landing-cost benchmark of ₦1,311 per litre, a factor that could complicate cost projections for depot owners and independent marketers.
In practical terms, when wholesale reference prices rise above landing-cost thresholds, supply-chain actors often reassess margins, stock movements, and pump-price targets—sometimes leading to swift price adjustments downstream.
Earlier Price Hold Now Reversed as Replacement Costs Rise
The refinery had previously kept its Lagos PMS gantry price at ₦1,265 per litre despite movement in the international oil market.
However, with crude and replacement costs climbing again, sources say the refinery appears to have adjusted its pricing to reflect the renewed cost pressures in the global petroleum market.
Depot Marketers Recalibrate Stocks and Pricing Across Nigeria
Industry sources indicate that the renewed price signal is already shaping behavior among depot operators and independent marketers.
Marketers are reportedly adjusting their stock positions and reviewing pricing—factors that may influence how quickly changes filter into retail and commuter-demand stations. Market realities differ by supplier and location, including:
- availability of product stock
- the product source and logistics route
- prevailing local market conditions
Ripple Effect Beyond Lagos: Warri, Port Harcourt, Calabar Watchlist
Beyond Lagos, operators say similar concerns are emerging around major coastal trading hubs, including:
- Warri
- Port Harcourt
- Calabar
These locations typically serve as key corridors for product distribution, meaning wholesale movements from reference points like Dangote often translate into faster regional market repricing.
Dangote Price Becomes Latest Wholesale Reference Point
The updated ₦1,350/litre ex-gantry price is expected to serve as the latest wholesale baseline for the downstream value chain, shaping next pricing decisions for depot operators and marketers.
International Crude Rally Fuels Replacement Cost Pressure
Analysts link the move to a broader global energy shift. Reports indicate international crude oil prices have climbed above $100 per barrel for the first time since July, intensifying replacement-cost pressures for refiners and import-dependent product markets.
Middle East Tensions Raise Supply Disruption Fears
The global rally has been attributed to escalating military tensions in the Middle East, including reports of heightened activity around Iranian oil tankers in the Gulf of Oman and near Kharg Island—one of Iran’s major oil export centres.
The development also follows reports of attempted missile attacks on a US Navy warship, raising fears the conflict could widen and threaten crude production and global shipping lanes.
Dangote Refinery’s decision to lift its PMS gantry price to ₦1,350 per litre is likely to tighten pricing margins across Nigeria’s fuel distribution chain, particularly for depots and independent marketers already balancing landing-cost benchmarks and elevated replacement costs.
If the international crude rally persists, market operators expect additional price reviews in the downstream petroleum sector—potentially affecting petrol, diesel, aviation fuel, transport costs, and broader consumer prices.
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