The Dangote Petroleum Refinery has raised the ex-depot price of petrol (Premium Motor Spirit) by ₦75, bringing it to approximately ₦1,350 per litre from the previous ₦1,275. This latest increase, announced on Wednesday, comes just weeks after the last adjustment in April 2026, which was attributed to fluctuations in global oil prices. The impact is already visible at filling stations across Nigeria, where petrol is now selling for close to ₦1,400 per litre in many areas, and in some locations, it has already reached that threshold.
Reasons Behind the Price Increase
The refinery cited global oil market volatility and rising production costs as the primary drivers for the adjustment. A senior official at Dangote Refinery confirmed the price change, supported by data from Petroleumprice.ng, a platform that monitors fuel pricing trends. The downstream sector in Nigeria is now fully deregulated, meaning local petrol prices move in tandem with international market dynamics. Several factors are contributing to the sustained price hikes: unstable global crude oil prices, foreign exchange challenges—particularly the cost of importing fuel components—and persistent supply chain issues. These combined pressures have led to more frequent and faster price adjustments than previously anticipated.
Government Stance: No Subsidy, No Price Control
Despite the rising cost of fuel, the Federal Government remains steadfast in its policy direction. Speaking in Paris during a meeting between President Bola Tinubu and global investors, Finance Minister Taiwo Oyedele reiterated that the fuel subsidy will not be reinstated. “We will not bring back fuel subsidy because it creates distortions for the economy, and we won’t introduce price control because we believe in the market,” he stated. Oyedele also noted that global developments, including tensions affecting oil supply routes, could present new opportunities for Nigeria as countries seek to diversify their energy sources.
Impact on Nigerians
The rising fuel costs are exerting additional pressure on food prices and transportation fares, affecting millions of Nigerians. With petrol prices now hovering between ₦1,350 and ₦1,400 per litre, there are growing concerns about how households and small businesses will cope if the trend continues. Transport costs are expected to rise, which typically trickles down to higher food prices and an increased cost of living. Without a subsidy or price cap in place, the market will continue to dictate future price movements, leaving consumers vulnerable to further increases.
