A fresh round of fuel price increases has swept through Nigerian filling stations following a supply disruption at the Dangote Refinery — a development that has once again tightened the economic noose on households and businesses already battling rising costs.
By Monday, retail outlets belonging to the Nigerian National Petroleum Company Limited (NNPCL) and several independent marketers had adjusted pump prices upward in major cities such as Abuja and Lagos. The hike came amid concerns of limited product availability, reportedly linked to the refinery’s temporary supply halt.
At NNPCL outlets in Abuja — including Kubwa Expressway, Gwarimpa, and Wuse Zones 4 and 6 (Berger) — the price of petrol climbed by ₦50, from ₦905 to ₦955 per litre, representing an increase of about 5.5 per cent. In Lagos, a similar adjustment took effect, with pump prices mirroring the upward shift. Other fuel stations such as Ranoil, Mobil, Sharon, and AA Rano followed suit, adjusting prices between ₦920 and ₦930 per litre.
This latest surge in petrol prices comes on the heels of a steep rise in the cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, which recently jumped to between ₦1,500 and ₦3,000 per kilogramme in Abuja and Lagos — up from ₦1,200–₦1,300. The twin increases in fuel and gas prices are deepening concerns over Nigeria’s already high inflation rates, which currently stand at 20.1 per cent for headline inflation and 21.87 per cent for food inflation as of August 2025.
Supply Lapse at Dangote Refinery Blamed
According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the sudden price escalation may be linked to the temporary unavailability of petrol from the Dangote Refinery. IPMAN President, Abubakar Maigandi, disclosed that marketers have been unable to lift products from the refinery since Saturday.
“For the past two days, our members have not been able to get Dangote Refinery petrol. It might be the reason for the hike. Currently, most of our members don’t have fuel because we are waiting for Dangote supply,” Maigandi explained.
The MRS filling stations — jointly owned by Aliko Dangote and Sayyu Dantata — have reportedly been shut since Saturday after selling petrol at ₦851 per litre.
“Artificial” Price Hike, Says PETROAN
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has described the latest price hike as “artificial,” attributing it to short-term supply and distribution distortions.
PETROAN President, Billy Gillis-Harry, noted that the entry of the 650,000-barrel-per-day Dangote Refinery into the downstream market has introduced transitional challenges that are expected to stabilize over time.
“Right now, this price hike is artificial, waiting for all the indexes to play out rightly in the industry. Dangote Refinery’s arrival is a positive game changer; however, as you can see, everybody is grappling with the reality that comes with it,” he said.
Gillis-Harry urged stakeholders — including the refinery and regulators — to collaborate in building a sustainable supply framework that ensures fair participation across the value chain.
Industry Context
The disruption follows weeks after the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) suspended its strike against the Dangote Refinery over the mass dismissal of workers. This latest price surge marks the second fuel hike in less than eight days, though industry players insist it is unrelated to the earlier labour dispute.
Dangote Refinery began its nationwide petrol distribution in September, supplying an average of 20 million litres daily — nearly half of Nigeria’s estimated 48 million litres per day consumption — according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
With the refinery’s operations now momentarily disrupted, the ripple effects are being felt across the nation’s energy market, amplifying the strain on consumers already struggling with surging living costs.