The price of petrol has surged across Nigeria, with filling stations in Lagos increasing rates from ₦860 to ₦930 per litre. Similar hikes have been observed in Abuja and other major northern cities, where petrol is now sold between ₦950 and ₦970 per litre.
The sudden increase follows a decision by Dangote Petroleum Refinery to temporarily halt the sale of petroleum products in Naira, citing the need to align sales with crude oil procurement costs, which are denominated in US dollars. The refinery stated that its Naira-based sales had exceeded the value of crude received in Naira from the Nigerian National Petroleum Company Limited (NNPCL).
Major filling stations, including MRS Oil & Gas, Ardova Plc, Heyden, Total Energies, and Mobil, have adjusted their prices in response to the development.
The move comes amid an ongoing price competition between Dangote Refinery and the NNPCL. In February, Dangote reduced its ex-depot price of petrol from ₦890 to ₦825 per litre, prompting NNPCL to cut its retail price from ₦945 to ₦860 per litre in Lagos.
Despite an earlier government directive for NNPCL to supply crude oil to local refineries in Naira, the state oil firm revealed that its agreement with Dangote Refinery expired in March 2025, with ongoing negotiations yet to yield a new deal.
Nigeria continues to grapple with fuel price instability, worsened by the removal of subsidies in May 2023, which saw prices rise from around ₦200 to nearly ₦1,000 per litre. While Dangote Refinery, commissioned in 2023, has ramped up diesel and aviation fuel production, full petrol production capacity remains a work in progress.
The fuel price surge is expected to further strain consumers already battling economic challenges, with fears of worsening inflation and transportation costs.
