Business
Dangote Refinery Raises Petrol Price Amid Supply Suspension Shock
Dangote Refinery raises petrol ex-depot price to ₦1,275 and suspends sales, triggering concerns over fresh fuel price increases nationwide
The Dangote Refinery has increased its ex-depot price of Premium Motor Spirit by ₦75 per litre and temporarily suspended product sales following a disruption in its Proforma Invoice processing system, raising fresh concerns over fuel price increases across Nigeria.
Market data obtained from Petroleumprice.ng, confirmed by a refinery official on Wednesday, showed that the loading price of petrol was raised from ₦1,200 to ₦1,275 per litre. Coastal supply pricing also rose to ₦1,215 per litre.
A senior refinery source confirmed the adjustment, stating that the new pricing structure had taken effect immediately.
The official also confirmed the suspension of sales, noting disruptions in the internal invoicing process.
“Yes, the increase of PMS to ₦1,275 per litre is true. Coastal price is ₦1,215,” the source said.
According to another insider, the refinery halted its Proforma Invoice entry process around 4:00 pm on Tuesday, disrupting normal supply operations and temporarily freezing both petrol and Automotive Gas Oil transactions.
The development has triggered concern among fuel marketers and depot operators, who fear that the suspension could lead to higher logistics costs and eventual increases in pump prices nationwide.
Industry operators say supply interruptions at major depots often ripple through the downstream market, increasing distribution costs and tightening product availability.
The pricing adjustment also comes amid a sharp rise in global crude oil prices, which has increased pressure on refiners.
Brent crude was trading at $114.80 per barrel as of 10:35 am (WAT), while West Texas Intermediate stood at $103.40 per barrel, both reflecting notable increases driven by geopolitical tensions affecting global supply routes.
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Analysts warn that sustained volatility in crude oil markets could further influence refined product pricing in the coming weeks.
Tinubu Niger Delta summit opens in Port Harcourt as investors and policymakers gather to drive investment, innovation and industrial growth
Dangote Petroleum Refinery has set its initial public offering price at ₦525 per share, with the company seeking to raise about ₦2.15 trillion as it prepares to enter Nigeria’s public equities market.
The Securities and Exchange Commission has approved the offer for 4.1 billion ordinary shares at ₦525 each. If fully subscribed, the offer would generate approximately ₦2.15 trillion, equivalent to about $1.6 billion at current exchange rates.
The offering is expected to open on 14 September 2026, according to Aliko Dangote, the president of Dangote Industries. The planned sale is positioned to become one of the largest equity offerings in Africa.
The IPO marks a significant step in Dangote Group’s plans to broaden ownership of the refinery and raise additional capital for expansion.
The refinery currently has a stated processing capacity of 650,000 barrels of crude oil per day. Dangote has said the company plans to increase that capacity to 1.4 million barrels per day as part of its longer-term expansion strategy.
The planned share sale follows a $1 billion underwriting programme completed in August, providing additional financial backing ahead of the public offering.
The refinery, located in the Lekki area of Lagos State, is one of Africa’s largest industrial projects and has become an increasingly important player in Nigeria’s fuel supply market since beginning operations.
The public offering will give Nigerian investors an opportunity to acquire shares in the refinery directly, while providing Dangote Petroleum Refinery with fresh capital to support its next phase of growth.
The company has also indicated ambitions to expand beyond its current Nigerian operations, with Dangote recently announcing plans for another refinery project in Kenya.
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