Nigeria’s Petrol Prices Set to Rise Amid Dangote Refinery’s Naira-for-Crude Standoff
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Nigeria’s petrol market is bracing for yet another price hike as the cost of importing Premium Motor Spirit (PMS) continues to climb. With the Dangote refinery suspending its naira-for-crude arrangement, fuel importers have been forced to adjust, setting the stage for what could be a return to ₦1,000 per litre at the pumps.
Industry data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported petrol has jumped by ₦88 in just one week, rising from ₦797 to ₦885 per litre. The sharp increase threatens to erase recent price reductions driven by Dangote’s competitive pricing, which saw petrol drop from about ₦1,000 to an average of ₦860 per litre.
At the heart of the crisis is the Federal Government’s reluctance to renew the naira-for-crude deal, which allowed Dangote refinery to buy crude oil in local currency and sell refined products to Nigerian marketers in naira. With this agreement now in limbo, the refinery has halted naira transactions, citing financial mismatches. In response, depot owners have raised prices, while some filling stations have begun stockpiling fuel in anticipation of a price surge.
Petroleum industry experts warn that without a stable supply from Dangote, Nigeria will rely more heavily on imported fuel, making local prices vulnerable to global market fluctuations and foreign exchange volatility. Some stakeholders, including the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), are urging the government to intervene and prevent fuel sales in dollars, fearing it will worsen inflation and put further strain on an already struggling economy.
As the standoff between Dangote refinery and the government continues, Nigerians face the prospect of yet another wave of fuel price increases—one that could reignite economic pressures and public frustration in a country where the cost of living is already rising.
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