The Dangote Petroleum Refinery has resumed full operations following a brief maintenance shutdown, while announcing a seven per cent increase in the gantry price of Premium Motor Spirit (PMS), also known as petrol, from ₦820 to ₦877 per litre.
The development, which took effect on Thursday, marks the refinery’s return to full-scale production capacity amid rising operational costs and fluctuating crude oil prices in the international market.
In a statement released by the management of the refinery, the adjustment in the price of petrol was attributed to increased crude feed stock costs, logistics expenses, and foreign exchange fluctuations affecting the petroleum downstream sector.
The price review reflects current market realities and is necessary to sustain production, ensure consistent supply, and maintain operational efficiency,” the statement read.
The refinery assured that despite the upward adjustment, it remains committed to stabilising the domestic fuel supply and reducing Nigeria’s reliance on imported petroleum products.
Industry observers noted that the Dangote Refinery’s decision could have ripple effects on pump prices nationwide, as marketers typically adjust retail prices based on gantry rates from local suppliers.
Reacting to the development, oil marketers expressed optimism that local refining will eventually lead to greater price stability once production reaches steady-state levels.
The refinery’s full resumption is good news for the market. While prices have gone up slightly, local production still offers long-term relief from import-related volatility,” said a marketer who preferred not to be named.
The ₦20 billion per day-capacity Dangote Refinery, located in the Lekki Free Trade Zone, Lagos, is Africa’s largest petroleum refining complex, with an estimated daily output of 650,000 barrels when operating at full capacity.
Analysts believe the plant’s sustained operations could help Nigeria save billions in foreign exchange, strengthen the naira, and reposition the country as a net exporter of refined petroleum products in the near future.
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