In a significant development for Nigeria’s energy sector, the Dangote Petroleum Refinery has adjusted its petrol price to ₦865 per litre, up from its previously announced ₦815 per litre. This price revision follows the suspension of the crude-for-Naira supply deal between Dangote Refinery and the Nigerian National Petroleum Company (NNPC).
Crude Supply Suspension Triggers Price Hike
The price increase comes on the heels of Dangote’s decision to halt the crude oil swap arrangement that previously allowed the refinery to receive Nigerian crude in exchange for Naira payments. This deal had initially helped reduce operational costs and stabilize local petrol prices.
Without access to subsidized or local crude supplies, the refinery now faces higher foreign exchange costs for crude importation, significantly impacting its cost of refining.
Related News Why Nigeria’s Fuel Prices Remain Unstable Despite Global Oil Trends
Oil Marketers Begin Lifting Petrol at New Rates
Petrol marketers, including notable companies like MRS Oil Nigeria Plc, have already commenced loading products from the 650,000 barrels-per-day capacity Dangote Refinery, signaling that the revised pricing structure is now active in the market.
Although the refinery had earlier made multiple price cuts in 2025, this latest move reflects growing pressures from both domestic and international economic factors.
Global Crude Prices Drop, But Refining Costs Stay High
Interestingly, this development coincides with a global dip in crude oil prices, which fell to $59 per barrel recently. Industry analysts had anticipated a decline in local petrol prices following the international crude drop. However, the reality has been quite the opposite.
High logistics, dollar exchange rates, and cost of crude imports continue to drive up refining expenses. These expenses are ultimately passed on to Nigerian consumers, despite the downward trend in global oil markets.
Bloomberg – Oil Prices Drop to $59 Amid Global Demand Concerns
What This Means for Consumers and the Economy
Fuel price fluctuations in Nigeria have a direct impact on transportation, food prices, and overall inflation. With this price hike, businesses may struggle to maintain current operating costs, and everyday Nigerians will likely experience rising costs of living once again.
Experts believe that the lack of consistent local crude supply, coupled with exchange rate volatility, could continue to destabilize fuel prices unless proactive measures are taken.
Also read: How Dangote Refinery is Changing Nigeria’s Oil Landscape
Conclusion
The decision by Dangote Refinery to raise petrol prices to ₦865 per litre illustrates the challenges posed by foreign exchange dependency and inconsistent crude supply. While Nigerians were hopeful for lower fuel prices amid falling global oil prices, the reality remains complex.
As policymakers and stakeholders deliberate on long-term energy solutions, the need for sustainable crude supply frameworks and local refining incentives becomes increasingly urgent.
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