Nigeria Petrol Prices Surge to N1,300/Litre as Dangote Refinery Cites Global Crude Exposure
Fuel prices across Nigeria have jumped sharply, with petrol reaching N1,300 per litre in some markets as Dangote Refinery raises ex-depot prices to N1,175 amid escalating global crude costs driven by Middle East geopolitical tensions.
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Premium Motor Spirit (PMS) prices have surged to between N1,175 and N1,300 per litre across Nigerian markets, driven by rising international crude oil prices and the Dangote Refinery's direct exposure to global commodity markets. The 650,000 barrel-per-day facility raised its ex-depot price to N1,175 per litre, according to Pulse Nigeria, while retail prices in Ibadan and surrounding Oyo State areas reached N1,300 per litre—up from N1,020-N1,080 previously, Vanguard News reported.
Dangote Refinery management attributed the price adjustment to its full exposure to international crude oil pricing mechanisms, which have been volatile amid escalating U.S.-Israel-Iran hostilities. "The current turbulence in energy markets has been intensified by escalating hostilities involving the United States, Israel, and Iran, which have disrupted global commerce and energy flows," the refinery's managing director told Channels Television. The facility, which commenced commercial operations in 2024, sources crude on international markets and prices its refined products accordingly, eliminating the subsidy cushion that previously shielded Nigerian consumers.
The price increase compounds Nigeria's energy access challenges at a time when domestic refining capacity was expected to stabilize fuel costs. Brent crude has traded above $85 per barrel in recent weeks, up from sub-$80 levels in early 2026, pressuring refining margins globally. Nigeria's removal of fuel subsidies in mid-2023 left consumer prices directly exposed to international benchmarks, with Dangote's pricing now reflecting landing costs that include crude procurement, freight, and refining expenses.
The timing coincides with broader energy sector developments across Nigeria. Lagos State Governor Babajide Sanwo-Olu signed the Lagos State Electricity Law 2024 into effect, aligning state regulations with the federal Electricity Act 2023 and inaugurating a state-level regulatory commission, according to Vanguard News. Separately, Edo State broke ground on a 100MW power generation plant and 300 metric tons-per-day LNG facility at Taihu Industrial Park, with Governor Monday Okpebholo pledging investor-friendly policies to support industrial expansion.
Market analysts note that sustained crude price volatility could push retail petrol prices higher if geopolitical tensions persist or OPEC+ production cuts tighten supply. Nigeria's downstream petroleum sector remains vulnerable to external shocks despite increased domestic refining capacity, with transportation costs and naira depreciation adding further upward pressure on pump prices.