Iran War Pushes Dangote Refinery to Hike Petrol Price to ₦1,245 per Litre

Dangote Petroleum Refinery has announced a fresh increase in the price of Premium Motor Spirit (PMS), raising it from ₦1,175 to ₦1,245 per litre, amid rising crude oil prices caused by the ongoing Middle East conflict.

In a notice to marketers on Friday, the Refinery also adjusted its coastal price from ₦1,512,648 to ₦1,606,518 per metric tonne, citing global market realities such as fluctuations in crude prices and higher shipping costs beyond its control. The new pricing takes effect from midnight on Saturday, March 21, 2026.

Marketers with existing supply arrangements supported by valid bank guarantees may still lift products at previous rates, provided their guarantees cover the price difference. The corresponding cost differential is to be debited to marketers’ trading accounts, with proof of payment required by March 23.

In a statement to newsmen, the Refinery highlighted that despite the increase, Nigeria continues to maintain one of the lowest petrol prices globally. According to GlobalPetrolPrices.com, petrol in Nigeria averages $0.88 (₦1,191.39) per litre, well below the global average of $1.32 (₦1,787.08), based on an exchange rate of ₦1,353.85 to the dollar.

For comparison, petrol prices in key markets are higher: the United States at $1.075 (₦1,455.39), India at $1.095 (₦1,482.47), South Africa at $1.189 (₦1,609.73), the United Kingdom at $1.874 (₦2,537.11), France at $2.152 (₦2,913.49), Germany at $2.343 (₦3,172.07), and Hong Kong at $3.967 (₦5,370.72) per litre.

Within West Africa, petrol remains cheaper in Nigeria compared to Togo ($1.192 / ₦1,613.79), Benin ($1.218 / ₦1,648.99), Ghana ($1.240 / ₦1,678.77), and Cameroon ($1.478 / ₦2,000.99) per litre. Analysts attribute Nigeria’s relative stability to Dangote Refinery’s growing capacity, which has absorbed much of the global cost pressures while ensuring consistent fuel availability.

The Refinery also emphasized that very few countries globally sell petrol below $1 (₦1,353.85) per litre without government intervention, highlighting the strategic role of Dangote Refinery in moderating domestic price volatility, even after Nigeria transitioned to a deregulated market post-subsidy removal in 2023.

Despite domestic petrol prices rising 35 to 40 percent since the start of the Middle East crisis, these increases remain below those seen in other countries, including Cambodia (67%) and Vietnam (49%).

This marks the fourth fuel price hike by Dangote Refinery in March 2026. Earlier adjustments in the month increased PMS prices from around ₦774 to ₦875, then ₦995, followed by ₦1,175, and now ₦1,245 per litre.