Dangote Petroleum Refinery has pushed back against claims that its new dollar-based sales policy is driving petrol price increases across Nigeria. The refinery says it has not yet received a single dollar payment from any marketer.
The denial follows a near-N50 per litre jump in Premium Motor Spirit (PMS) prices at several Dangote-linked outlets. That spike fuelled public speculation that the refinery’s shift to dollar-denominated transactions had fed directly into higher pump costs.
What Dangote Says About the Price RiseA senior refinery official told Punch that products currently selling at elevated prices were purchased before the new framework took effect. The official said the cost increase reflects old inventory, not goods procured under the dollar payment arrangement.
The refinery has kept its official gantry price at $0.779 per litre, which translates to roughly N1,077 per litre at the current exchange rate. According to the official, the policy change was designed to align sales with the refinery’s crude oil procurement obligations and support the facility’s long-term viability, not to trigger an immediate spike in Dangote petrol prices.
Petrol Prices at MRS, Pinnacle and Other DepotsData from Petroleumprice.ng showed notable variation in ex-depot PMS prices across Lagos, with several marketers quoting figures well above the refinery’s naira-equivalent gantry price.
Prices at major depots included:Pinnacle: N1,130 per litreMRS: N1,095 per litreAfrican Terminal: N1,127 per litreSahara: N1,127 per litreSome Dangote-linked marketers were also selling petrol at approximately N1,125 per litre, a premium of around N48 above the refinery’s stated ex-depot price.
Experts Flag Risks AheadDespite the refinery’s assurances, energy analysts have raised concerns about the medium-term implications of settling domestic fuel purchases in foreign currency.
Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, said many marketers are unfamiliar with dollar-based payment obligations for locally sourced fuel. He said this unfamiliarity is already causing delays in fresh product purchases and adding uncertainty to the downstream market.
Olatide warned that if the policy remains in place, it could raise the cost of doing business for fuel traders and eventually filter through to higher pump prices nationwide, including at stations operated by NNPC.
Diesel Prices Rose 86% in May 2026Separately, the National Bureau of Statistics reported that the average retail price of diesel increased by 86.40 percent year-on-year to N3,277.47 per litre in May 2026, up from N1,758.26 per litre in May 2025.
The report also showed diesel prices rose 32.44 percent month-on-month, climbing from N2,474.69 per litre in April 2026 to N3,277.47 in May.
