The Dangote Petroleum Refinery has increased prices for both Premium Motor Spirit (PMS), also known as petrol, and Automotive Gas Oil (diesel), following a surge in global crude oil prices above $93 per barrel.
The refinery raised its gantry price by ₦20 per litre, from ₦1,165 to ₦1,185 per litre. This represents a partial reversal of a ₦50 cut implemented on August 6, though the new price remains ₦30 below the ₦1,215 level that prevailed before that reduction.
The diesel price increased by ₦100 per litre, from ₦1,570 to ₦1,670, a 6.4 per cent rise.
These price adjustments took effect at midnight on August 21, 2026, according to Petroleumprice.ng.
This comes as crude oil prices went up in recent days amid fading hopes of a concrete negotiation between the United States and Iran over the ongoing war that led to supply chain disruption following the closure of the Strait of Hormuz.
Brent Crude, the international benchmark, rose to $93.49 per barrel, while the United States’ West Texas Intermediate (WTI) was sold at $86.43 per barrel on Thursday, August 20, 2026.
Reports indicate that the geopolitical tensions in the Middle East and renewed enforcement of sanctions against Iranian crude exports have elevated global benchmark pricing and squeezed downstream fuel supply.
The standoff over the Strait of Hormuz has significantly disrupted global oil shipments. According to the U.S. Energy Information Administration, crude oil and petroleum liquids transported through the strait fell to approximately 4.9 million barrels per day in the second quarter of 2026, down sharply from roughly 21.6 million barrels per day before the conflict began.
Dangote Refinery Prices Lower than Imported Products
Pinnacle Daily reports that despite the increases, Dangote Refinery’s prices remain below the cost of imported petroleum products and those of independent depots in Lagos.
According to a report by the Major Energies Marketers Association of Nigeria (MEMAN), the landing cost of petrol as of August 19, 2026 was ₦1,216.23 per litre (spot). This shows Dangote Refinery’s gantry price for petrol is lower than the imported one by ₦31.23 per litre.
The refinery’s new petrol gantry rate of ₦1,185/litre is also below current market prices offered by major private depots in Lagos, where PMS trades between ₦1,190 and ₦1,200 per litre.
The MEMAN’s Competency Centre Energy Bulletin also showed that the landing cost of imported diesel was ₦1,713.21 per litre (spot). This indicates that it is ₦43.21 higher than Dangote Refinery’s diesel price.
Also, the refinery’s diesel price is below what is offered by various depots in Lagos, where prices range from ₦1,660 to ₦1,700 per litre.
Truck queues have swelled at the Dangote Refinery as marketers rush to secure products at prices that undercut rival depots across Lagos. The diesel price gap is particularly attractive—a standard 33,000-litre truckload from Dangote instead of Pinnacle saves marketers ₦2.31 million per trip, according to prices reported by Petroleumprice.ng.
READ ALSO:
- Dangote Slashes Petrol Price to N1,165, Diesel to N1,570/L
- Oil Price Drop Triggers Fresh Competition in Nigeria’s Downstream Market
- Diesel Consumption in Nigeria Rises as PMS Drops
- Nigeria’s Daily Diesel Supply Rises 84.3% as Import Crashes
- Imported Petrol Cost Rises Above Dangote Refinery Fuel
Market analysts note that while crude oil remains available, refined products are experiencing tighter conditions. Ole Hansen, Head of Commodity Strategy at Saxo Bank, observed that “the real oil market stress is downstream,” noting that “crude is available, diesel is not.”
The diesel crack spread in the United States hit triple digits this week, reaching as high as $102 per barrel before easing to approximately $100—an unprecedented level that underscores severe refining margin pressure.
Consumer Outlook
For Nigerian motorists and businesses, the latest adjustments could increase attention on pump prices in the coming days. However, retail prices do not automatically follow gantry prices, as they also reflect transportation, logistics, dealer margins, and other operating costs. Should crude prices remain elevated or further supply disruptions occur, additional pressure across the domestic fuel market is expected.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X