Petrol Prices Surge in Abuja as Dangote Hikes Gantry Rate Amid Global Oil Spike

Petrol pump prices have climbed sharply across filling stations in the Federal Capital Territory, with motorists now paying as much as N1,430 per litre after the Dangote Petroleum Refinery raised its gantry price by N85 to N1,350 per litre.

The adjustment, which took effect on Saturday, September 12, 2026, marks the fourth upward review of the refinery’s Premium Motor Spirit (PMS) wholesale rate since August 21. In just 22 days, Dangote’s gantry price has risen by N185 — or about 15.9 per cent — from N1,165 earlier in the period. It moved first to N1,185, then N1,200, N1,265, and now N1,350.

The latest increase represents a 6.7 per cent jump and pushes the refinery’s wholesale price above the current petrol landing cost of around N1,311 per litre. Coastal delivery prices were also revised upward, from N1,669,545 to N1,783,530 per metric tonne. The refinery notified customers late on Friday via a circular from its Group Commercial Operations office, directing them to return existing Automated Truck Certificates for repricing before loading could resume under the new terms.

Checks by the News Agency of Nigeria in Abuja on Sunday showed major retail outlets already reflecting the higher costs. MRS stations raised pump prices from N1,350 to N1,395 per litre. NIPCO outlets moved from N1,350 to N1,430, while Mobil stations adjusted from N1,350 to N1,400. An attendant at an MRS station, who spoke on condition of anonymity, indicated further increases were likely once new stock arrives, noting that current sales were still based on older inventory.

Similar adjustments appeared in Lagos, where some MRS outlets jumped from about N1,310 to N1,395 per litre, with other stations quoting between N1,360 and N1,385. The rapid pass-through underscores the dominant influence of Dangote’s pricing on the downstream market since the refinery began significant domestic supply.

The hike comes against a backdrop of elevated global crude oil prices. Brent crude, the benchmark for Nigerian oil, has been trading above $100 per barrel in recent days, with reports citing levels around $107–$108 earlier in the week amid ongoing geopolitical tensions and supply concerns linked to Middle East developments. Higher international crude and product replacement costs have intensified pressure on local refiners and marketers.

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Economists and industry stakeholders warn that the increases will cascade through the economy. Aliyu Ilias, an economist and development expert, said higher petrol prices would drive up transportation and production costs, particularly for food and other essentials, potentially worsening inflation and deepening hardship for households. “The more prices increase, the more the cost of producing goods, especially food, will rise because everything is affected by transportation costs. This kind of change is not good for the economy at all,” he noted.

Mr Owei Lakemfa, former Secretary-General of the Organisation of African Trade Union Unity, argued that Nigeria — as a crude oil producer with a large population — should better shield consumers from global price swings. He called for stronger economic planning and regulatory frameworks so that domestic fuel prices do not automatically mirror every international crisis. Lakemfa also expressed concern about oligopolistic and monopolistic tendencies in the downstream sector, urging regulatory agencies to prevent any single player from exerting excessive influence over a critical commodity. “You cannot allow any individual or group to dictate to the country. That is why you have regulatory agencies. The government is there to protect the state and the people,” he said.

Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that marketers had reviewed pump prices in response to the successive Dangote adjustments. He highlighted the uncertainty created by frequent changes, which complicate stock replacement and pricing decisions for both marketers and consumers.

Industry observers note that Dangote’s pricing has become increasingly responsive to international crude movements and replacement costs. While the refinery has occasionally cut rates when global prices eased, the recent rapid upward trajectory reflects the current high-cost environment. Depot and retail prices continue to vary by location, supplier, and remaining stock, but the new N1,350 gantry benchmark is expected to exert further upward pressure in the coming days and weeks.

For ordinary Nigerians, the immediate impact is higher fuel bills and the prospect of elevated transport fares and living costs. As global oil markets remain volatile, attention is turning to whether policymakers can introduce measures that better insulate domestic consumers while the country expands its local refining capacity.