LAGOS, Nigeria – The Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS), commonly known as petrol, to N955 per litre for marketers, effective 5:30 pm on Friday, January 17, 2025.
The price hike, attributed to rising Brent crude oil costs, represents a 6.17% increase over the holiday discount rate of N899.50 per litre offered in December.
In an official statement titled “Communication on PMS Price Review,” the refinery outlined the revised pricing tiers:
Previous Prices:
- 2 million–9.99 million litres: N899.50 per litre
- 10 million litres & above: N895 per litre
New Prices:
- 2 million–4.99 million litres: N955 per litre
- 5 million litres & above: N950 per litre
The statement clarified that any stock balances not lifted by the effective time would be repriced at the new rates, with updates on revised volumes to follow.
Impact on the Petroleum Sector
The increase is expected to ripple through the downstream petroleum sector, affecting private depots and retail outlets across Nigeria.
Rising Brent Crude Oil Prices
A surge in Brent crude oil prices, which reached $81.84 per barrel on Thursday—the highest in 2025—has been cited as a key driver of the price adjustment.
Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources (Oil), underscored the role of global crude oil prices in determining PMS costs under the deregulated downstream sector:
“The price of crude oil in the international market remains a major force in driving fluctuations in petrol pump prices. With the downstream sector fully deregulated, the government no longer sets prices,” Senator Lokpobiri said.
The price hike is poised to increase the cost of transportation, goods, and services, placing additional strain on Nigerian consumers already grappling with high inflation and economic challenges.
The Dangote Refinery, one of Africa’s largest oil processing facilities, continues to play a dominant role in shaping fuel pricing dynamics in Nigeria, reflecting the realities of a fully deregulated petroleum market.
