Dangote Refinery Raises Petrol Prices Amid Market Pressures

Nigeria's efforts to produce more petrol domestically have not insulated consumers from rising prices, which reached approximately ₦1,400 per litre in Lagos and Abuja, with some northern stations charging ₦1,500 as of September 21. This situation arises because the cost of crude oil remains tied to international market fluctuations, even when the finished product is refined locally.

The Dangote Petroleum Refinery raised its petrol loading-bay price from ₦1,265 to ₦1,350 per litre effective September 12, marking the fourth price increase since August 21, totaling a rise of ₦185 per litre, or about 15.9%. This increase coincides with elevated international oil prices and supply disruptions through the Strait of Hormuz.

While local refining can reduce some supply chain costs, the rising costs of feedstock can negate these potential savings.