Dangote Lifts Nigerian Petrol to About US$1.02 a Litre
NIGERIA · ENERGY
Key Facts
- —The price Dangote’s petrol gantry price rose to N1,350 (about US$1.02) a litre with effect from 12 September 2026.
- —The rise N185 a litre, or 15.9%, from N1,165 before the first of four increases in late August.
- —The steps N1,165 to N1,185 on 21 August, then N1,200, then N1,265 on 29 August, then N1,350.
- —At the pump Lagos stations moved to around N1,395 (about US$1.05); some had not adjusted by the evening of 12 September.
- —The crude argument Brent fell during the two largest August increases, which cuts against the stored-crude-cost explanation.
- —No executive on record The changes were announced in an unsigned memo from group commercial operations; no Dangote executive has spoken publicly about any of the four increases.
Four increases in three weeks, and during two of them the crude price was falling. The explanation and the timing do not line up.
Dangote Petroleum Refinery has raised its petrol gantry price to N1,350 a litre, about US$1.02, with effect from 12 September. It is the fourth increase since late August, a cumulative rise of N185 a litre.
The Sequence
The price stood at N1,165 a litre before the first increase. That was about US$0.86 at the 20 August exchange rate of N1,349.09 to the dollar. It moved to N1,185 on 21 August, then N1,200, then N1,265 on 29 August, and N1,350 on 12 September.
That is N185 a litre, about US$0.14, or 15.9% in a little over three weeks — the first increase is dated to 20 or 21 August depending on the source.
The same 12 September memo raised the coastal price from N1,669,543 to N1,783,530 a tonne, an increase of 6.8%. In dollar terms, that is roughly US$1,260 to US$1,346 a tonne.
What It Costs at the Pump
Lagos stations moved quickly. MRS outlets at Alapere went to about N1,395 a litre, about US$1.05, from N1,310 before the increase. Mobil at Alapere was at N1,385 and an NNPC Retail station at Ibafo in Ogun State at N1,380.
Not every station followed. Bovas was still at N1,280, about US$0.97, on the evening of 12 September. That is the ordinary lag as stations work through stock bought at the previous price.
A Timeline That Undercuts the Crude Explanation
Brent was around US$95 a barrel when the sequence began in late August, then fell to about US$86 by 26 August. It rallied to US$105.82 on 11 September and rose above US$107 by 14 September.
The refinery has pointed to the cost of replacing stored crude. An EBC Financial Group analysis, published on 7 September, found that the two largest August increases occurred while crude was falling. That timing is difficult to reconcile with that explanation.
The September increase is a different case. With Brent above US$105, a replacement-cost argument for the 12 September move is straightforward.
None of this comes from Dangote itself: no group executive has gone on record on any of the four increases, and the refinery’s only public word has come through unsigned memos from its group commercial operations arm. The replacement-cost account, like the timing questions around it, rests on reconstructions by outside analysts and marketers rather than on statements the company has made.
What the Marketers Say
The Major Energy Marketers Association of Nigeria put the estimated petrol landing cost at N1,311.36 a litre, about US$0.99, on 8 September. That was N46.36 above Dangote’s then-price of N1,265 and N95.02 above the preceding 30-day average replacement cost of N1,216.34.
A landing cost above the domestic gantry price is the condition under which importers stop importing. That concentrates supply further on the refinery and gives its pricing more weight.
Why It Reaches Everyone
Nigeria removed its petrol subsidy in 2023. Since then, the pump price has moved with the landed and refinery cost rather than being administered.
Transport is the main channel into the wider price level. Petrol at N1,350 feeds into intercity fares and market logistics. It also feeds the cost of running the generators that much of Nigerian commerce still depends on.
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Frequently Asked Questions
What is the new price?
N1,350 a litre, about US$1.02, from 12 September 2026.
How much has it risen?
N185 a litre, about US$0.14, or 15.9%, across four increases since late August.
What was the starting price?
N1,165 a litre before the first increase, about US$0.86 at the 20 August exchange rate.
What are pump prices now?
Around N1,395 (about US$1.05) at Lagos MRS stations, with some outlets still at N1,280.
Does the crude price explain it?
Partly. Brent fell during the two largest August increases, though it was above US$105 by the time of the September move.
Sources: Vanguard, Daily Trust, Legit.ng, Tribune Online, BrandSpur, MEMAN.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief