Dangote Petroleum Refinery has recalled all previously issued Pro Forma Invoices (PFIs) due to a mistake in its petrol pricing. The company has now set the new ex-depot price at ₦815 per litre, up from the earlier ₦805 per litre, to include a 1% regulatory charge from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Why the Price Changed
Earlier this week, Dangote Refinery informed fuel marketers that petrol would be sold at ₦805 per litre. However, on the evening of March 13, 2025, the refinery withdrew all PFIs, explaining that the NMDPRA levy had not been included. The correction means that marketers must now pay ₦815 for 2 million litres and above from Dangote’s refinery in Lekki, Lagos.
Industry sources say this adjustment came after discussions with regulators, who insisted on including the charge. A refinery insider said, “The recall was necessary to fix the pricing and ensure transparency.”
As a result, fuel marketers must resubmit their orders and payments based on the new pricing. Though this caused some short-term delays, the process is expected to normalise soon.
Effect on the Fuel Market
The price change has raised concerns in Nigeria’s oil industry, especially as the country depends on Dangote Refinery to reduce fuel imports. The refinery, which has a capacity of 650,000 barrels per day, was expected to bring stability to fuel pricing. However, this adjustment shows the challenges of switching to locally refined fuel.
Marketers now have to adjust their retail prices. Even though ₦10 per litre may seem small, added costs like transportation, taxes, and profit margins could push pump prices closer to ₦900 per litre in some areas.
The Bigger Picture
Nigeria’s fuel prices have always been unpredictable, affected by global oil prices, currency exchange rates, and government policies. Dangote Refinery was expected to help stabilise prices by refining local crude, but this recent adjustment shows that other factors, like regulatory charges, still play a role.
The charges are the make up of 0.5% MDGIF and 0.5% NMDPRA which makes it 1%, though the 1% charge may seem small, similar levies, could further increase fuel costs in the future.
Reactions from Stakeholders
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has welcomed the price correction but hopes such adjustments will be better planned in the future. PETROAN’s President, Billy Gillis-Harry, said, “While the recall caused delays, it shows that Dangote is serious about getting the price right.”
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that frequent price changes could reduce trust in the refinery’s pricing system.
Consumers, already struggling with rising costs, fear that higher petrol prices will increase transport fares and food prices. A taxi driver in Lagos, Adebayo Musa, said, “Every time fuel price goes up, everything else becomes more expensive.”
What’s Next?
Dangote Refinery has not yet issued an official statement on whether more price adjustments will follow. However, sources suggest that the company is working to improve its pricing process to avoid similar issues in the future.
As Nigeria pushes for energy security through local refining, this incident highlights the need for clearer pricing structures and better communication between refineries, regulators, and marketers.
For now, all eyes are on whether the ₦815 per litre price will remain stable and how it will affect fuel supply across the country.
