A supply disruption at the Dangote Refinery has led to a new surge in petrol prices across filling stations in Nigeria.

Several outlets, including those operated by the Nigerian National Petroleum Company Limited (NNPCL), Ranoil, AA Rano, Mobil, and Sharon, adjusted their pump prices upward on Monday.

At NNPCL retail stations located along the Kubwa Expressway, Gwarimpa, and Wuse Zones 4 and 6 (Berger) in Abuja, petrol prices rose by about 50 naira, representing a 5.5 per cent increase — from ₦905 to ₦955 per litre. Similarly, NNPCL outlets in Lagos also reviewed their pump prices upward.

The NNPCL adjustment has prompted other marketers to follow suit. Ranoil now sells at ₦930 per litre, up from ₦910, while Mobil, Sharon, and AA Rano stations within Abuja and surrounding areas are dispensing at ₦920 per litre.

This recent development comes on the heels of a sharp rise in the price of Liquefied Petroleum Gas (cooking gas), which now sells for between ₦1,500 and ₦3,000 per kilogramme in Abuja and Lagos — up from ₦1,200 and ₦1,300 respectively.

Rising Fuel and Gas Costs Deepen Economic Strain

The successive hikes in fuel and gas prices are expected to worsen the already high cost of living in the country, with headline inflation and food inflation recorded at 20.1 per cent and 21.87 per cent respectively as of August 2025.

Marketers Explain the Cause

According to Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), the latest increase may be linked to a temporary halt in fuel supply from the Dangote Refinery over the past two days.

He explained that many independent marketers had been unable to obtain fuel since Saturday, which may have led to the current price surge among major energy marketers.

“For the past two days, our members have not been able to get petrol from Dangote Refinery. This might be the reason for the price increase. Most of our members currently have no stock because we are waiting for fresh supply,” he said.

It was also gathered that MRS filling stations, owned by Aliko Dangote and Sayyu Dantata, have remained closed since Saturday, after selling petrol at ₦851 per litre.

PETROAN: ‘Hike Is Artificial’

Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), described the current fuel and gas price hikes as artificial.

He noted that the entry of Dangote Refinery into the downstream sector has introduced new dynamics that are still being adjusted to by market players.

“Right now, this price increase is artificial; the market is still settling into a new balance,” he said. “Dangote Refinery’s entry is a game changer, but as with any new development, there will be initial disruptions. These effects are temporary, and things should stabilise in the coming days.”

Gillis-Harry added that the sector is still recovering from multiple challenges, emphasizing the need for cooperation among all players to establish a stable supply framework that benefits consumers nationwide.

Background

The current price surge marks the second increase in less than a week. The previous hike was largely attributed to disputes involving the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery, which have since been resolved.

Dangote Refinery began nationwide fuel distribution in September, supplying an average of 20 million litres of petrol daily — nearly half of Nigeria’s total consumption of 48 million litres per day, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).