BUSINESS
FUEL SCARCITY WORSENS AS DANGOTE REFINERY FACES OPERATIONAL SETBACKS, FILLING STATIONS SHUT DOWN NATIONWIDE
Nigerian filling stations that depend on fuel supplies from Dangote Refinery have begun shutting down operations amid growing operational setbacks at the 650,000-barrel-per-day facility.
According to a Bloomberg report on Thursday, the $20 billion Lagos-based refinery has cut its crude intake by 50%, dropping from 600,000 barrels per day in July to fewer than 300,000 barrels per day in October 2025 — less than half its total capacity.
The report indicated that the refinery’s operational challenges are expected to persist into 2026, a situation that could continue to drive up petrol prices across the country.
“Nigeria’s huge Dangote oil refinery has been buying a lot less crude lately amid operational setbacks, something analysts say could persist into next year and keep supporting gasoline prices,” Bloomberg quoted analysts as saying.
Industry tracker IIR Energy revealed that the refinery’s residue fluid catalytic cracker (RFCC) — a key unit for petrol production — has been faulty since late August, disrupting supply. Although the unit is expected to restart operations this week, major repair work remains, and another shutdown is anticipated in January 2026.
“European gasoline has been extremely strong as a result of Dangote’s issues,” noted Neil Crosby, an analyst at Sparta Commodities.
In Abuja, MRS filling stations in Kubwa and along the Lugbe Expressway were observed closed as of Thursday, October 16, 2025, due to non-supply from the refinery.
A station manager, who spoke to DAILY POST under anonymity, confirmed:
“It is true we are yet to get supply from the refinery. We rely on it 100 per cent. Hopefully, we will get supply on Friday or at the weekend.”
Other Dangote retail partners, including Optima and Ardova, have reportedly turned to major oil marketers for emergency supplies to stay operational.
Earlier this week, MRS and other Dangote-linked outlets raised their petrol prices from ₦851 to ₦950 per litre, while major stations such as NNPCL, Total, AA Rano, Ranoil, and Mobil adjusted prices to between ₦940 and ₦955 per litre in Abuja and surrounding areas.
Leaders of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) — Abubakar Maigandi and Billy Gillis-Harry, respectively — confirmed to DAILY POST that a temporary supply disruption from Dangote Refinery is the primary reason behind the current fuel scarcity and price hike.
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