Nigerians Gear Up for Hike in Fuel Cost as Dangote Refinery Increases Price to ₦1,245 per Litre

According to media reports on March 20, 2026, Dangote Refinery has increased the gantry price of Premium Motor Spirit (PMS) to ₦1,245 per litre, which is a ₦70 addition to the previous price of ₦1,175.

This hike in price comes amid the continuous shortage in the global supply of crude oil, which now sells for as high as $119 per barrel.

Nigeria has been affected by the global oil crisis caused by the ongoing conflict between the United States and its ally Israel, which has been carrying out a military operation against Iran. The conflict has disrupted oil production and supply in the oil-rich Middle East, which accounts for nearly 30% of the global consumption.

In the past month, Nigerians have seen a steady increase in PMS price as Dangote refinery first increased the cost of fuel per litre to ₦874 from ₦774 before raising it to ₦1,075 and ₦1,175 to reflect the global cost of crude oil. The latest increment is the highest price yet since the conflict began, and comes after an initial reduction to ₦1,075 before an increase back to ₦1,175 barely a week later.

With Dangote Refinery now raising the gantry price to ₦1,245, the pump price will see a corresponding increase that could rise to nearly ₦1,500 per litre.

The persisting crisis in the Middle East caused by the conflict is likely to further aggravate the prices of crude oil in the coming weeks. On March 19, Arab states met in Riyadh, Saudi Arabia, to demand that Iran halt all attacks in the region; however, their request has yet to yield any result, as Iran bombed Kuwait's biggest oil refinery a day later.

So far, Dangote Refinery has appeared to be open to adjusting the price of its product in line with the price of crude oil. The Refinery, which can produce up to 600,000 barrels daily, is the biggest in Africa and one of the largest in the world. The refinery currently caters to Nigeria's daily consumption, which is partly why the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has not issued any new oil importation license since 2025.

In the press release addressing the previous increase in price, Dangote Refinery blamed it on the rising global cost of sourcing crude oil. With the Nigerian National Petroleum Corporation Limited unable to meet Dangote Refinery's crude oil demand, the refinery purchases a bulk of its crude oil abroad, and the global shortage has increased its production cost.