Petrol prices have seen a fresh increase as the Dangote Petroleum Refinery adjusted its ex-depot price for Premium Motor Spirit (PMS) to N1,245 per litre, effective from midnight on Saturday, March 21, 2026. This move, which was confirmed by refinery officials today, is the fourth such adjustment in the month of March, reflecting the extreme volatility of the global energy market. The refinery management cited the escalating geopolitical tensions in the Middle East and the resulting surge in international crude oil costs as the primary reasons for the hike. According to Channels TV, the new pricing is a direct response to the rising costs of raw materials, as the refinery continues to source a portion of its crude in US Dollars despite the Federal Government’s Naira-for-crude arrangement.
The impact of this petrol price hike was immediate, with independent marketers in Lagos and Abuja adjusting their pump prices to between N1,380 and N1,450 per litre. Long queues have resurfaced at several NNPC retail outlets that are still selling at older rates, as motorists struggle to cope with the rising cost of living. Vanguard reports that the increase is expected to trigger a ripple effect on transportation costs and the prices of essential commodities across the country. In response to the development, the Nigerian Association of Road Transport Owners (NARTO) has hinted at a possible upward review of freight charges to cover the increased operational costs. This has raised concerns among economic analysts that the recent gains made in reducing the headline inflation rate could be eroded if the petrol price continues on its current trajectory.
Despite the price increase, the Dangote Refinery maintains that it is providing the highest quality petrol in the Nigerian market, with significantly lower sulfur content compared to imported varieties. Gopedia Media’s market analysis today shows that the refinery is currently operating at 70% capacity, with plans to reach full production by the end of the second quarter of 2026. The Federal Government has urged citizens to remain calm, noting that the deregulation of the downstream sector is a necessary step toward achieving long-term energy security. To cushion the effect of the petrol hike, the government is accelerating the distribution of CNG-powered buses under the Presidential CNG Initiative. As Nigerians navigate this new pricing reality, the focus remains on whether local production can eventually decouple from global market fluctuations to provide more stable energy costs for the average citizen.