Nigeria’s Dangote Petroleum Refinery has raised the price of petrol sold to fuel marketers, citing surging crude costs triggered by escalating tensions involving the United States, Israel and Iran, an official said Sunday.
The refinery increased its gantry price the rate at which fuel is sold to distributors at the depot by 121 naira to 995 naira ($0.64) per litre, up from 874 naira previously.
A senior refinery official confirmed the adjustment, saying the move reflects rising costs for crude oil imports as global markets react to the intensifying conflict in the Middle East.
“Coastal delivery is 948 naira, while gantry is 995 naira,” the official told local media, referring to delivery prices for marketers transporting fuel from coastal terminals.
The price increase quickly filtered through to retail markets in the Nigerian capital, Abuja, where pump prices rose to about 1,100 naira per litre at several filling stations on Sunday.
Stations operated by Conoil and the state-backed Nigerian National Petroleum Company Limited were selling petrol at around 1,080 to 1,081 naira per litre, up from roughly 960 naira earlier in the week.
The latest adjustment marks the second increase in less than a week by the refinery as global oil markets react to supply disruptions linked to the Middle East crisis.
Earlier in the week, the refinery raised its ex-depot price by 100 naira per litre, moving it from 774 naira to 874 naira.
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The price surge comes as oil markets respond to tensions threatening shipments through the strategic Strait of Hormuz, a key global oil transit route.
Roughly one-fifth of the world’s oil and liquefied natural gas supply passes through the narrow waterway, making it highly sensitive to geopolitical disruptions.
Benchmark oil prices have already surged. The global reference price Brent Crude jumped nearly eight percent to about $87 per barrel over the past 24 hours, with analysts warning that prices could climb to $100 or higher if the conflict widens.
Energy markets have also been shaken by production cuts in parts of the Gulf region. The Kuwait Petroleum Corporation reportedly began reducing oil output and declared force majeure on shipments as the conflict disrupted regional energy flows.
Supply reductions have also been reported in Iraq and Qatar, adding to uncertainty in global markets.
The Dangote refinery said earlier this week that the crisis had forced the shutdown of some refining facilities worldwide and reduced production in others, contributing to tightening supplies of refined petroleum products.
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The company said it had absorbed about 20 percent of the rising costs to cushion the impact on Nigeria’s domestic market.
“It is worth noting that Nigerian crude oil is more expensive than the Brent benchmark price by $3 to $6 per barrel,” the refinery said in a statement issued earlier.
Despite being one of Africa’s largest crude oil producers, Nigeria still relies heavily on imported refined fuel, leaving domestic petrol prices vulnerable to global oil market swings.
Analysts warn that if crude prices continue to rise, Nigerians could face further increases in petrol prices in the coming weeks, potentially pushing up transport fares and the cost of goods and services across the economy.
Higher global oil prices could boost government revenues for Nigeria, but economists say the immediate impact on consumers is likely to be rising living costs as fuel prices climb.
The Dangote Petroleum Refinery is Africa’s largest oil refinery and one of the biggest single-train refining facilities in the world, built to transform fuel supply in Nigeria and across West Africa. The project is owned by Nigerian billionaire Aliko Dangote through the Dangote Group and represents one of the largest industrial investments ever undertaken on the African continent.
Located in the Lekki Free Trade Zone on the outskirts of Lagos, the refinery sits on roughly 2,600 hectares of land and forms part of a massive integrated petrochemical and fertiliser complex.
The facility was commissioned in May 2023 after nearly a decade of planning and construction, with total investment estimated at about US$19–20 billion.
At full capacity, the refinery is designed to process 650,000 barrels of crude oil per day, making it the largest refinery in Africa and one of the biggest single-train refineries globally.
The project was conceived partly to address Nigeria’s long-standing dependence on imported fuel. Despite being Africa’s biggest crude oil producer, the country has historically relied heavily on foreign refineries due to the poor performance of its ageing state-owned refining plants.
By refining crude domestically, the Dangote refinery aims to meet 100 percent of Nigeria’s demand for petrol, diesel, kerosene and aviation fuel, while also producing surplus petroleum products for export to regional markets.
Industry analysts say the refinery could significantly reshape fuel supply chains across West and Central Africa by reducing imports of refined petroleum products and strengthening regional energy security.
The refinery is also designed as a broader petrochemical hub. In addition to fuels, it produces industrial materials including polypropylene, sulphur and carbon-black feedstock, which are used in plastics, chemicals and manufacturing industries.
The complex has its own 435-megawatt power plant, allowing it to generate electricity independently for refinery operations and nearby facilities.
Construction of the refinery required extensive engineering work, including reclaiming large areas of swamp land and building major port and pipeline infrastructure to handle crude imports and fuel exports.
At the peak of construction, more than 30,000 workers were involved in the project, making it one of the largest industrial construction sites in Africa.
The refinery began gradually ramping up operations in 2024, producing diesel, aviation fuel and other refined products before expanding output to include petrol. By mid-2025, production levels were approaching the facility’s planned capacity.
The project is widely viewed as a strategic milestone for Nigeria’s energy sector, which has struggled for decades with refining shortages despite its vast crude oil reserves.
However, the refinery has also faced operational and market challenges, including securing consistent crude supplies and navigating Nigeria’s evolving fuel pricing policies.
Looking ahead, Dangote Group has announced plans to expand the refinery’s capacity to about 1.4 million barrels per day, potentially making it the largest refinery in the world once completed.
If realised, the expansion would significantly boost refining capacity not only in Nigeria but across the African continent, strengthening the region’s ability to process its own crude oil and reduce dependence on imported fuels.
For Nigeria, the refinery is expected to play a crucial role in stabilising fuel supply, improving foreign exchange balances and supporting broader industrial development in Africa’s largest economy.
