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Petrol prices jumped to N960 per litre at major Abuja filling stations this week after the Dangote refinery raised wholesale rates by N100, citing crude supply shortages and freight cost spikes driven by fighting across the Middle East that has disrupted global oil flows.
The refinery increased its ex-depot price from N774 to N874 per litre on Tuesday, a roughly 12 percent adjustment that operators passed directly to consumers within hours.
NNPC and Conoil stations along Airport Road in Lugbe had sold fuel at N875 and N880 on Monday.
Dangote Petroleum Refinery said Thursday the increase followed sharp rises in crude and freight costs triggered by the conflict between the United States, Israel and Iran, which has forced refineries to shut down in several countries and tightened global supplies of refined products.
The company said it absorbed 20 percent of the cost escalation to cushion domestic buyers.
Brent crude has swung sharply since Saturday as Iran threatened to block the Strait of Hormuz, the channel through which roughly half the world’s crude oil and condensates move.
Shipping has stalled across Gulf countries, and trucking operations have been disrupted by fighting that has spread beyond Iran’s borders.
The refinery blamed part of the price pressure on Nigerian crude itself, which it said trades $3 to $6 per barrel above the global Brent benchmark. After adding freight charges of about $3.50 per barrel, crude lands at the facility at a cost between $88 and $91 per barrel, according to the company.
Supply volumes from the Nigerian National Petroleum Company Limited fall short of what the refinery needs to meet domestic demand, Dangote said. NNPC delivers roughly five cargoes monthly, paid for in naira but priced at international rates plus a premium. The refinery requires 13 cargoes to support sales into Nigeria and has been forced to buy the difference from international traders at higher premiums.
The company also criticized upstream producers for failing to supply crude as required under the Petroleum Industry Act, the 2021 law designed to overhaul the sector. That shortfall has left the refinery dependent on global spot markets, where prices have climbed as Middle East tensions escalated.
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Dangote said it would prioritize domestic supply to insulate Nigeria from disruptions affecting other markets, but warned that selling below cost would undermine its ability to procure crude and sustain production. The refinery, which began commercial operations last year, now produces around 650,000 barrels of refined products daily.
To reduce distribution costs, the company said it would accelerate deployment of trucks powered by compressed natural gas.
The rollout is scheduled to begin this month and is intended to improve delivery times and lower logistics expenses across Nigeria’s downstream sector.
The price adjustment marks the latest instance of global oil market volatility feeding through to Nigerian consumers, who have seen fuel costs rise repeatedly over the past year as the government removed subsidies and allowed prices to float closer to import parity levels.
Nigeria depends heavily on refined product imports despite being one of Africa’s largest crude producers. The Dangote refinery was built partly to reduce that reliance, but its operations have been complicated by difficulty securing consistent crude supply from domestic sources.
The refinery’s statement Thursday emphasized transparency and long-term energy security but provided no indication when prices might stabilize or whether further increases are expected if the Middle East conflict persists. Oil markets remain volatile, with traders watching for signs the Strait of Hormuz could reopen or whether fighting will spread to other producing regions.
Read more: Dangote Predicts Naira Could Hit N1,100 Per Dollar In 2026
Nigerian motorists have felt the impact of fuel price increases most acutely in recent months, as transportation costs rise and inflation erodes purchasing power. The latest jump to N960 per litre in Abuja represents more than a tenfold increase from prices before subsidies were removed in mid-2023.
Whether the refinery’s explanation will satisfy consumers facing higher costs remains unclear.
Some Nigerians have questioned why a domestic refinery processing local crude cannot shield the market from global price swings, though energy analysts note that crude is a globally traded commodity whose price reflects international supply and demand regardless of where it is produced.
