Fuel Price Hike in Nigeria
“The current Middle East crisis is affecting overall global energy prices, crude oil, LNG and other fuels, and that has implications for refined product pricing globally,” stated a source from the Dangote refinery. This remark comes as the Nigerian National Petroleum Company Limited (NNPCL) has raised fuel prices for the second time in less than 24 hours, reflecting the ongoing volatility in the global energy market.
As of March 8, 2026, NNPCL adjusted its pump price from N967 to N1,082 per liter in Abuja. Retail pump prices in various states have now exceeded N1,000 per liter, with some stations reportedly dispensing petrol at around N1,200 per liter.
The increase in prices follows a significant rise in crude oil prices, which have surged above $90 per barrel due to geopolitical tensions in the Middle East. This situation has prompted the Dangote refinery to temporarily suspend the loading of Premium Motor Spirit (petrol), further complicating the supply chain.
According to reports, the refinery’s gantry price has increased from N874 to N995 per liter. The refinery currently receives only five cargoes a month from NNPC, falling short of the 13 cargoes required under the naira-for-crude policy. This has raised concerns about the sustainability of local refining amid increasing import pressures.
Mohammed Ibrahim, a local industry expert, commented, “What we are seeing is nothing but deliberate blackmail by some fuel importers who feel threatened by local refining.” This highlights the tensions between local producers and importers as fuel prices continue to escalate.
Furthermore, a Dangote refinery official emphasized, “Selling below cost would undermine our ability to procure crude, sustain production, and guarantee supply.” This statement underscores the challenges faced by local refineries in maintaining operations amid rising costs.
Jeremiah Olatide, another industry analyst, noted, “If the refinery was not operating, petrol prices in Nigeria could easily have reached N1,500 per litre.” This suggests that the local refining capacity is playing a crucial role in moderating potential price hikes.
The Nigerian National Petroleum Company Limited has begun moves to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders, aiming to stabilize the supply chain.
Details remain unconfirmed regarding the immediate impact of these crude oil supply interventions on petrol prices. The long-term effects of geopolitical tensions on fuel prices also remain uncertain as the situation develops.