Petrol prices have climbed to as high as ₦1,310 per litre in parts of Lagos following another increase in the Premium Motor Spirit (PMS) price by the Dangote Petroleum Refinery, adding fresh pressure to motorists and households across Nigeria.
The refinery increased its gantry, or ex-depot, price by ₦65 per litre, from ₦1,200 to ₦1,265 per litre, effective August 29, 2026.
The latest adjustment is the refinery’s third petrol price increase in eight days, bringing the cumulative increase since August 21 to about ₦100 per litre, or approximately 8.6 per cent.
The refinery also increased its coastal price, reportedly moving it from about ₦1.582 million to ₦1.670 million per metric tonne.
Following the adjustment, filling stations in Lagos began reviewing their pump prices. Petrol that had been selling for between ₦1,205 and ₦1,250 per litre at some outlets has risen to around ₦1,310 per litre in several locations.
The latest increase could spread to other parts of the country as independent and major marketers adjust their prices to reflect higher acquisition and distribution costs.
The development has attracted attention because it comes as international crude oil prices have eased from their recent highs. However, crude oil prices alone do not determine the price motorists pay for petrol in Nigeria.
The domestic price is influenced by several factors, including the naira exchange rate, product acquisition costs, transportation, storage, financing and other downstream expenses.
Inventory replacement costs can also affect pump prices. Marketers may base their pricing on the prevailing cost of replacing products in their tanks rather than simply responding to changes in the international crude market.
Nigeria’s continued reliance on imported petrol is another factor. Despite rising output from the Dangote refinery, imported products still account for a significant portion of domestic supply, leaving the market exposed to international shipping costs and foreign-exchange movements.
The Dangote refinery has previously raised concerns about the impact of petrol imports on domestic demand and its supply planning as it seeks to increase its share of the Nigerian market.
For consumers, the latest increase is likely to have consequences beyond the filling station. Higher petrol costs can translate into increased transport fares, higher logistics expenses and additional pressure on the prices of food and other essential commodities.
Households and businesses that rely on petrol-powered generators are also likely to face higher operating costs, while commercial drivers and logistics operators may be forced to review their charges to offset rising fuel expenses.
Although the Dangote refinery has strengthened Nigeria’s domestic refining capacity and reduced some dependence on imported petroleum products, consumers remain exposed to fluctuations in crude prices, foreign exchange, supply conditions and distribution costs.
Motorists will now be watching closely to see whether other refiners and marketers respond with further price adjustments or whether increased competition eventually leads to lower pump prices.
For now, however, the latest Dangote adjustment means motorists in parts of Lagos are paying as much as ₦1,310 per litre, further increasing the cost of transportation, energy and everyday living in Nigeria.
