Dangote Refinery Raises Petrol Price to ₦1,275 Per Litre

The Dangote Petroleum Refinery has increased its ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, by ₦75 per litre, deepening concerns over another nationwide increase in fuel prices as marketers brace for higher depot and retail costs.

Industry pricing data and market sources confirmed on Wednesday that the refinery raised its petrol loading price from ₦1,200 per litre to ₦1,275 per litre, while its coastal supply price climbed to ₦1,215 per litre.

A senior refinery official confirmed the adjustment, saying: “Yes, the increase of PMS to ₦1,275 per litre is true. Coastal price is ₦1,215.”

The latest increase comes just weeks after previous adjustments by the refinery and has already triggered reactions across Nigeria’s downstream petroleum market, with marketers anticipating corresponding increases at filling stations nationwide.

The situation became more tense after reports emerged that the refinery temporarily suspended its Proforma Invoice (PFI) processing system on Tuesday evening, disrupting normal product loading and supply scheduling.

Sources familiar with operations at the refinery disclosed that the suspension took effect around 4:00 p.m., affecting the processing of orders for both petrol and Automotive Gas Oil (AGO), commonly known as diesel.

Industry operators said the disruption immediately affected loading activities and created uncertainty among depot owners, fuel marketers, and logistics operators dependent on Dangote Refinery supplies.

Market analysts noted that interruptions within the refinery’s loading system could tighten product availability in the short term and further increase pressure on fuel prices across the country.

The latest development has also triggered anxiety among independent marketers and petroleum distributors, many of whom are now reviewing pricing templates in anticipation of higher operational and replacement costs.

Industry stakeholders warned that rising ex-depot prices usually translate into increased transportation costs, logistics expenses, and eventual pump price adjustments at retail stations.

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Some marketers further expressed concern that the suspension of sales and invoice processing could temporarily affect supply volumes in parts of the country if not quickly resolved.

The downstream petroleum market has remained highly volatile in recent months following deregulation of the sector and fluctuations in foreign exchange rates.

The increase in petrol prices also coincides with a sharp rise in global crude oil prices, driven largely by escalating geopolitical tensions around the Strait of Hormuz, one of the world’s most critical oil shipping routes.

As of Wednesday morning, Brent crude traded at approximately $114.80 per barrel, reflecting a 3.15 per cent increase, while West Texas Intermediate (WTI) crude rose to about $103.40 per barrel, up by 3.49 per cent.

Energy analysts say the surge in international crude prices has significantly increased feedstock and replacement costs for refiners globally, including the Dangote Refinery.

The rising cost of crude oil is expected to continue putting pressure on refined petroleum products such as petrol, diesel, and aviation fuel.

Economic observers have warned that another increase in petrol prices could worsen inflationary pressures across Nigeria, especially in transportation, food distribution, manufacturing, and logistics sectors.

Transport operators in some cities have already hinted at possible fare increases if fuel prices continue to rise.

The development also comes amid growing concerns over rising energy costs in Nigeria’s aviation sector, where operators have recently raised alarm over increasing Jet A1 aviation fuel prices.

Despite the latest pricing concerns, the Dangote Refinery remains one of the biggest players in Nigeria’s energy market and Africa’s largest single-train refinery.

The refinery has increasingly become a major supplier of refined petroleum products within Nigeria and neighbouring African countries, helping reduce dependence on imported fuel products.

Industry analysts say the refinery’s pricing decisions now significantly influence Nigeria’s downstream petroleum market due to its growing supply dominance.

Meanwhile, marketers and industry stakeholders are awaiting further clarification from the refinery on when full product sales and invoice processing operations will resume.

Dangote Refinery Raises Petrol Price to ₦1,275 Per Litre

Naira Remains Stable in Official Market Amid Rising Black Market Dollar Demand

The Nigerian Naira opened trading on Tuesday, April 28, 2026, with cautious stability against the US Dollar, as the official exchange rate and parallel market rate continued to reflect a wide gap amid persistent foreign exchange pressure.

In the Nigerian Foreign Exchange Market (NFEM), the naira traded around ₦1,360 per $1, showing slight intraday movement between ₦1,359 and ₦1,360 during early trading hours. The relatively stable opening suggests controlled liquidity conditions in the official market.

Transactions tracked on the FMDQ Securities Exchange indicated that trading remained within a narrow range as banks and institutional investors adjusted positions based on demand and supply. The market continues to operate under the “willing buyer, willing seller” framework, which guides price discovery in the official FX window.

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The Central Bank of Nigeria (CBN) is maintaining oversight of the foreign exchange market, with ongoing efforts aimed at improving dollar liquidity and reducing pressure from unmet demand. Analysts note that recent interventions targeting FX backlog clearance and supply support to key sectors have helped limit extreme volatility.

However, the black market (parallel market) continues to show significantly higher rates due to strong retail demand for dollars. In major cities including Lagos, Kano, and Port Harcourt, the dollar is trading between ₦1,480 and ₦1,495 per $1, depending on transaction size and location.

The widening gap between the official exchange rate and the parallel market rate remains a major concern for economic analysts, as it reflects ongoing shortages of foreign exchange in formal channels.

Market observers say several factors are influencing today’s exchange rate movement, including Nigeria’s oil revenue inflows, which remain the country’s primary source of foreign exchange earnings. Additional pressure is coming from demand for imports, manufacturing inputs, foreign education payments, and medical travel abroad.

The clearance of outstanding FX obligations to airlines and multinational companies is also shaping liquidity conditions in the market. Meanwhile, global market sentiment and investor appetite for emerging market currencies continue to play a role in short-term naira movements.

Despite continued pressure, analysts say the naira has shown relative stability in the official window, suggesting that current policy measures are helping to prevent sharper depreciation.

Market expectations for the rest of the trading week indicate that the naira may remain within a similar range unless there is a major shift in FX inflows or new intervention from the Central Bank of Nigeria. Attention remains on closing rates later in the day to determine the overall direction of the currency.

Naira Remains Stable in Official Market Amid Rising Black Market Dollar Demand

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate

Former President Olusegun Obasanjo has restated his long-standing criticism of Nigeria’s state-owned refineries, insisting that the facilities under the Nigerian National Petroleum Company Limited (NNPC Ltd) will “never work,” despite ongoing rehabilitation efforts and billions of dollars reportedly spent over the years.

Obasanjo made the remarks during a televised interview on Sony Irabor Live, where he reviewed past attempts to revive Nigeria’s refining sector and argued that government-managed refineries have consistently failed due to inefficiency, corruption, and poor maintenance culture.

He maintained that only a strong public-private partnership (PPP) model can deliver sustainable results in the oil and gas downstream sector, pointing to the success of Nigeria LNG (NLNG) as proof that private sector participation improves performance and accountability.

Obasanjo said Nigeria’s refineries remain structurally weak and mismanaged, stressing that repeated government interventions have failed to yield results. According to him, “NNPC refineries will never work,” adding that the system has been weighed down by decades of poor maintenance practices and institutional inefficiencies.

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The former president recalled efforts during his administration to bring in international oil companies, including Shell, to manage Nigeria’s refineries either through equity participation or operational control. He said Shell declined the offers, explaining that their downstream operations were not major profit drivers and that refinery management presented significant operational and structural risks. Obasanjo also said Shell raised concerns about Nigeria’s refinery capacities, which he described as relatively small compared to global standards, as well as issues of poor maintenance, corruption, and reliance on unqualified personnel.

Obasanjo further disclosed that business mogul Aliko Dangote once offered about $750 million to acquire a controlling stake in two of the refineries and manage them under a private sector arrangement. He said the proposal was initially accepted during his tenure but was later reversed after he left office, following pressure on the succeeding administration from NNPC leadership. According to him, the reversal contributed significantly to the continued decline of the refineries, which he believes have lost much of their value over time.

He also claimed that Nigeria may have spent as much as $16 billion on refinery rehabilitation efforts over the years, yet the facilities remain largely inefficient and commercially uncompetitive. He compared this figure with the cost of building modern private refineries, arguing that the country has spent enough to construct world-class facilities but has failed to achieve functional output.

Despite the criticism, the NNPC continues efforts to revive the Port Harcourt, Warri, and Kaduna refineries through the engagement of new technical partners. Officials have acknowledged that although some of the refineries briefly resumed operations in 2024 after rehabilitation, they are still operating below international standards and remain economically uncompetitive compared to private refineries. The NNPC has set a target of June 2026 to conclude the selection of technical partners to manage the facilities and improve operational efficiency.

The debate over Nigeria’s refining future has intensified following the emergence of the privately owned Dangote Refinery, widely regarded as Africa’s largest single-train refinery. Industry observers say the contrast between private and state-owned refinery performance continues to fuel arguments in favour of private sector-led management of critical energy infrastructure.

The NNPC has not issued an official response to Obasanjo’s latest comments at the time of filing this report.

NNPC Refineries Will Never Work – Obasanjo Reignites Oil Sector Debate