Dangote Increases Petrol Price, Restarts Sales After One-Week Halt

Dangote Petroleum Refinery has announced an upward adjustment in the pump price of petrol, resuming sales after a one-week suspension that had disrupted supply across parts of the country. The decision, which the company says was driven by market realities and operational cost pressures, comes just days after it temporarily halted distribution to address what it described as supply chain and pricing review issues.

In a statement issued by the refinery’s management, the company explained that the new pump price reflects current crude oil costs, foreign exchange rates, and logistics expenses. While exact figures vary by location due to transportation differentials, market sources indicate that the increase is significant enough to impact retail prices nationwide.

A spokesperson for Dangote Refinery stated: “We recognise the concerns of Nigerians over fuel pricing, but this adjustment was necessary to ensure sustainable operations. The refinery remains committed to providing high-quality petroleum products and stabilising supply in the domestic market.”

The one-week suspension, which began last Monday, had caused noticeable disruptions in fuel supply chains, with some filling stations running out of stock and queues reappearing in major cities. Industry players said the halt was partly due to internal stock management and pricing reviews aimed at aligning with current market conditions.

According to sources in the downstream sector, the refinery’s decision to resume sales will help ease pressure on the market, particularly as independent marketers had expressed concern over dwindling supplies from other sources. However, they warned that the price increase could push pump prices higher across the country unless mitigated by government intervention or market competition.

This latest development is the first major price adjustment by Dangote Refinery since it commenced petrol distribution earlier this year. Analysts say the move underscores the challenges faced by local refiners in balancing operational sustainability with consumer affordability, especially amid fluctuating global oil prices and persistent currency volatility.

Energy economist Dr. Femi Oladipo noted: “Even though local refining reduces reliance on imports, pricing will still be influenced by global oil benchmarks and exchange rates. The refinery has to cover its costs, but any increase will inevitably have a ripple effect on transportation and the general cost of living.”

The Dangote Refinery, touted as Africa’s largest single-train refinery, has been seen as a game-changer for Nigeria’s energy sector, with the potential to meet domestic demand and supply regional markets. However, its operations are closely watched due to the strategic role petrol plays in Nigeria’s economy and daily life.

During the suspension period, some marketers resorted to alternative supply channels, but these proved insufficient to meet demand, leading to minor shortages in several states. With sales now resumed, marketers expect a gradual return to normalcy, though the higher prices may dampen public sentiment.

Consumer advocacy groups have urged the refinery to work with regulators to ensure transparency in pricing and to consider mechanisms that can cushion the impact on low-income households. They argue that while operational viability is important, affordability must remain a priority given petrol’s critical role in the economy.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has yet to issue an official comment on the price hike, but officials are reportedly in discussions with the refinery’s management to monitor supply stability and assess potential market impacts.

For many Nigerians, the resumption of petrol sales brings relief from the supply disruptions, but the increased prices raise concerns about the cost-of-living crisis. Transport operators, logistics companies, and small businesses—many of which depend heavily on petrol—are expected to adjust their pricing in response to the hike.

As operations stabilise, attention will now turn to how the Dangote Refinery navigates future market pressures while fulfilling its promise of making Nigeria self-sufficient in refined petroleum products. Industry observers say the refinery’s pricing strategy over the coming months will be crucial in determining its long-term role in the domestic fuel market.

With supply restored but prices higher, Nigerians are once again confronted with the delicate balance between market forces and affordability—a challenge that will likely remain central to the country’s energy discourse in the months ahead.