New Petrol Prices Emerge As Depots Hike Fuel Costs After Dangote’s New Deal With Marketers
- Petroleum product prices have increased at private depots following the collapse of the naira-for-crude deal between refineries and NNPC
- Depot owners quickly adjusted their prices after Dangote Refinery announced that it would denominate its petrol sales in dollars
- Findings show that private depots have adjusted their prices to N877 per litre from N850 before the Dangote Refinery Announcement
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Petroleum product prices have increased following the halt in the naira-for-crude deal between the Nigerian National Petroleum Company Limited (NNPC) and domestic refineries, including the Dangote Refinery.
The six-month deal ensured a steady supply of petroleum products from the Dangote and other domestic refineries, leading to a significant reduction in petroleum product prices.
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Analysts ask Nigerians to brace up for higher prices
Analysts say the deal’s collapse will erode the gains achieved in the downstream petroleum industry since President Bola Tinubu removed the subsidy on May 29, 2025.
Domestic refineries had received crude oil from the state oil company delivered in the local currency, instead of dollars, the international currency in the global oil industry.
However, the Nigerian downstream sector quickly shifted on the announcement that the naira-for-crude arrangement collapsed following Dangote’s suspension of the sale of petroleum products to marketers in the local currency.
Dangote announced a temporary halt in the supply of petroleum products to marketers in naira.
The development has led to a sharp increase in depot prices, with PMS now selling for N875 from N850 per litre before the announcement.
New petrol prices at private depots
Data tracking petrol price movements showed that loading at various depots on Thursday, March 20, 2025, increased with owners selling petrol at N875 per litre.
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According to a BusinessDay report, Matrix Warri increased its depot prices by N22 from N852 to N875 per litre, and Zamson Depot raised its price from N853 to N875 per litre.
Rainoil Depot also spiked its prices from N853 to N875 per litre, while Pinnacle Warri and Sobaz changed their prices to N875 per litre from N854 and N850 to N870 and N875 respectively.
Dangote gives reasons for new change
The development now means Nigeria will be getting ready for higher petroleum prices at the pumps after experiencing three price reductions from the Dangote Refinery.
Dangote Refinery cited a mismatch in sales proceeds and crude oil purchase obligations for the suspension of petrol sales in naira.
Part of the statement reads:
"To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency."
Additionally, the plant denied claims it had halted loading due to a ticketing fraud incident.
It added:
"Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues."
Implication Dangote's decision to sell petrol in dollar
Commenting on the development, Wale Ogundeji, an energy analyst, told Legit.ng that Dangote Refinery’s decision to sell petrol in dollars rather than naira, following NNPC’s halt of the naira-for-crude swap, has significant economic implications.
He said:
"First, it could exacerbate fuel price volatility as forex fluctuations impact domestic pump prices. Second, it may strain local oil marketers who lack sufficient dollar liquidity, potentially leading to supply disruptions. Additionally, this move signals deep structural challenges in Nigeria’s FX market and refining sector. While it may boost forex inflows, it risks further weakening the naira."
He added that the policy shift underscores the urgent need for forex stability and refined product pricing reforms to sustain economic balance.
Experts predict new petrol price
Legit.ng earlier reported that following the suspension of the naira-for-crude arrangement between the Nigerian National Petroleum Company Limited (NNPC), the Dangote Refinery and domestic refiners, Nigerians have been asked to brace up for higher PMS prices.
The development comes as the parties could not renew the naira-for-crude deal entered into in October last year.
The deal ensured that domestic refineries, including the mega Dangote Refinery, get crude oil in the local currency to ensure availability, better pricing and reduced prices.
The article has been updated with additional comments by head of business desk Victor Enengedi.
