BUSINESS
DANGOTE REFINERY SUPPLY GLITCH TRIGGERS FRESH FUEL PRICE HIKE ACROSS NIGERIA
A temporary supply glitch at the Dangote Refinery has triggered a fresh fuel price hike across major filling stations in Nigeria, compounding economic hardship for citizens.
Reports indicate that several outlets of the Nigerian National Petroleum Company Limited (NNPCL), along with Ranoil, AA Rano, Mobil, and Sharon, adjusted their Premium Motor Spirit (PMS) pump prices upward on Monday.
In Abuja, NNPCL retail stations located along Kubwa Expressway, Gwarimpa, and Wuse Zones 4 and 6 (Berger) increased petrol prices by ₦50 or about 5.5%, selling at ₦955 per litre, up from ₦905.
Similarly, NNPCL outlets in Lagos raised their pump prices, prompting a ripple effect across independent and major marketers.
Other stations—Ranoil (₦930, up from ₦910), Mobil (₦920), Sharon (₦920), and AA Rano (₦920)—also implemented new price adjustments.
This development comes amid rising Liquefied Petroleum Gas (LPG) prices, which recently climbed to between ₦1,500 and ₦3,000 per kilogramme in Abuja and Lagos, worsening household expenses.
Marketers Cite Dangote Supply Delay
The Independent Petroleum Marketers Association of Nigeria (IPMAN) attributed the latest price surge to the unavailability of Dangote Refinery’s products in the past few days.
IPMAN President, Abubakar Maigandi, confirmed that members had been unable to obtain supplies since Saturday, creating scarcity pressures among major distributors.
“For the past two days, our members have been unable 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 said.
DAILY POST findings also revealed that MRS filling stations, owned by Aliko Dangote and Sayyu Dantata, have remained closed since Saturday, when they last dispensed petrol at ₦851 per litre.
PETROAN Labels Price Increase ‘Artificial’
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), through its National President, Billy Gillis-Harry, described the latest fuel and gas hikes as “artificial”, noting that the disruptions are temporary teething challenges linked to the refinery’s new operations.
“Right now, this price hike is artificial, waiting for all the indexes to play out rightly in the industry,” Gillis-Harry said.
“Dangote Refinery’s arrival is a positive game changer. However, as you can see, everybody is grappling with the reality that comes with it. These are flukes of the moment; things will stabilise soon.”
He urged stakeholders, including Dangote Refinery and government regulators, to collaborate in creating a seamless supply and pricing framework that benefits all players and consumers alike.
Background: Refinery’s Distribution Impact
In September, Dangote Refinery began its nationwide fuel distribution scheme to willing marketers, supplying an estimated 20 million litres daily—almost half of Nigeria’s 48 million-litre daily consumption.
However, this transition has caused occasional supply disruptions as the refinery integrates with existing logistics and retail networks.
The recent glitch marks the second fuel price increase in eight days, further heightening inflationary pressures.
According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation stood at 20.1%, while food inflation hit 21.87% in August 2025, underscoring the rising cost of living.
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