New Pricing Structure for Premium Motor Spirit (PMS)
The Dangote Petroleum Refinery has announced an upward adjustment in the price of Premium Motor Spirit (PMS), also known as petrol, following the consistent surge in the price of Brent crude oil, the global benchmark for crude.
In a statement obtained on Friday, the refinery disclosed that refined petrol would now be priced at N955 per litre for customers purchasing between 2 million and 4.99 million litres. For bulk purchases of 5 million litres and above, the price is set at N950 per litre.
This marks a significant increase from the N899.50 per litre price offered as a holiday discount in December 2024, representing a hike of N55.5 or 6.17%. The new pricing regime takes effect from 5:30 PM today, with all pending stock balances and orders repriced accordingly.
Details of the Price Adjustment
The email, titled “Communication on PMS Price Review,” outlined the revised pricing structure:
| Quantity | Previous Price (NGN/Litre) | New Price (NGN/Litre) |
|---|---|---|
| 2 million – 4.99 million | N899.50 | N955 |
| 5 million litres & above | N895 | N950 |
The refinery stated, “Please note that all stock balances yet to be lifted as of the above-stated time are to be repriced at the new reviewed prices. Customers will be informed of their revised volumes based on the updated pricing.”
Impact on the Downstream Sector
The price increase is expected to have ripple effects across the downstream petroleum sector, affecting private depots and retail fuel markets.
Oil and gas expert Olatide Jeremiah, CEO of Petroleum Price.ng, explained, “Dangote Refinery’s influence on fuel prices has become unmatched. Private depots, major marketers, and independent marketers will align with this new pricing structure. Nigerians should brace for an increase in the petrol pump price.”
Jeremiah attributed the price hike to the rising cost of Brent crude oil, which stood at $81.84 per barrel as of Friday—the highest price recorded in 2025.
Deregulation and Market Dynamics
The price adjustment underscores the implications of a deregulated downstream petroleum sector. On Thursday, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, reiterated that crude oil prices in the international market significantly influence petrol pump prices.
“The downstream sector is now fully deregulated. The government is no longer involved in setting prices, leaving market forces to dictate costs,” Lokpobiri stated.
What to Expect
With the Dangote Refinery setting new benchmarks for petrol pricing, other players in the petroleum industry are expected to follow suit. Experts predict that pump prices will rise nationwide as marketers adjust to the increased cost of refined products.
The development highlights the intricate relationship between global crude oil prices, domestic petrol pricing, and market competition, emphasizing the need for consumers to stay informed about the evolving dynamics of Nigeria’s petroleum sector.
