Hopes that the Dangote Petroleum Refinery would ease Nigeria’s fuel price crisis have been dampened, as the Nigerian National Petroleum Company Limited (NNPC) raised petrol prices across the country for the second time in two weeks, despite its recent fuel procurement from the Dangote facility.
Fuel prices at NNPC filling stations have surged to ₦950 per litre in Lagos and as high as ₦1,019 in parts of northern Nigeria, sparking widespread consumer frustration and casting doubt on short-term relief expectations from the 650,000-barrel-per-day Dangote Refinery, Africa’s largest.
Initially, optimism soared after the Dangote Refinery introduced petrol at an ex-depot price of ₦825 per litre, significantly lower than the prevailing market rates.
However, that enthusiasm was short-lived when the refinery announced it would suspend sales of petroleum products in the Nigerian Naira. The decision stemmed from a commercial imbalance: the refinery purchases crude oil in U.S. dollars but receives revenue from domestic sales in a depreciating local currency.
As a result, fuel retailers have adjusted their pump prices upward, with several stations in Lagos, Abuja, and Port Harcourt now selling petrol between ₦925 and ₦950 per litre.
For a population already struggling with inflation and high transport costs, the development has added new pressure to household and business budgets.
Industry experts say the pricing issue highlights deep-rooted structural challenges in Nigeria’s fuel supply chain. “Without stable access to foreign exchange and a clear policy on crude oil supply to local refiners, the market will remain volatile,” noted energy analyst Chinedu Akor. “Even with Dangote’s entry, fuel affordability depends on how well the entire supply and payment ecosystem is managed.”
The Dangote Refinery, which began supplying fuel to the domestic market earlier this year, was seen as a potential game-changer in reducing Nigeria’s dependency on imported petroleum products.
While the facility remains operational, its decision to pause Naira-based sales signals broader economic challenges, including forex shortages and pricing misalignments between upstream and downstream players.
As negotiations between the Dangote Group, NNPC, and the federal government continue behind closed doors, attention is now turning to regulatory interventions that might ease the tension between dollar-denominated crude procurement and local currency fuel distribution.
