Dangote Breaks Silence On Third Petrol Price Hike In 8 Days As Pump Price Nears N1,400/Litre
According to a report by PUNCH on Monday 31 August 2026, this is the third price change announced by the Dangote Petroleum Refinery in the past eight days, and the refinery has now provided an explanation for its most recent petrol price hike.
Reportedly, on Monday, August 31, 2026, PUNCH reported that the refinery had increased the gantry price of Premium Motor Spirit from N1,200 to N1,265 per liter, a rise of N65.
The refinery has declared a total increase of N100 per liter, which includes the latest adjustment. This announcement was made a little over a week ago.
Gas prices have risen further as a result of the move, with a liter of gas now costing anything from 1,310 to 1,400 Nigerian naira nationwide.
According to a senior refinery official, the cost of processed crude cannot always be directly linked to the current international market price, which is why the latest increase occurred.
“The price of crude oil being processed cannot always be related directly to the present international market price,” the official stated.
A long chain of events, including discussions, payment arrangements, shipping, and transportation, culminates in the arrival of petroleum in Nigeria, as the official elucidated.
“When international prices were higher, some of the crude that is currently being processed was purchased weeks or even months earlier,” the official stated.
Because of the refinery’s large stockpile of relatively expensive oil, its present production costs may be reflective of higher crude prices even if global prices start to decline.
The explanation is provided in light of the fact that the global oil market is experiencing swings, with increasing tensions between the US and Iran also impacting crude prices.
The refinery relies on imported petroleum, which impacts its operations. Reuters reported earlier that 30–40% of the refinery’s crude feedstock comes from outside Nigeria.
Petroleum marketers, meantime, have voiced their displeasure with the volatility of gas prices, claiming it hinders their ability to plan and run their operations.
The Independent Petroleum Marketers Association of Nigeria’s National Publicity Secretary, Chinedu Ukadike, expressed concern that the marketers were facing significant difficulties due to the frequent changes.
The present circumstances prevent us from organizing our companies efficiently, Ukadike stated.
In addition, he cautioned that fuel prices could see greater fluctuations if ongoing geopolitical tensions caused market volatility in the petroleum industry.
Politicians in Nigeria are once again debating the fate of fuel subsidies in light of the most recent gasoline price hike.
If elected president in 2027, Atiku Abubakar of the African Democratic Congress will fulfilll his promise to reinstate fuel subsidies.
According to Atiku, the proposal will alleviate the strain on Nigerian homes and companies caused by the recent spike in petrol prices, making it easier for them to afford transportation and other essential operations.
COURTESY: Kofo_News
