Amid escalating tensions in the Middle East, Nigeria is witnessing a sharp debate over petrol prices as the Dangote Petroleum Refinery and importers clash over costs. Data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that imported petrol is roughly N64 cheaper per litre than Dangote-produced fuel. However, the refinery challenged importers, arguing that their claims ignore the risks of sourcing fuel from conflict zones and underscoring the importance of domestic production.
The recent surge in global oil prices, which jumped to $84 per barrel from below $70 due to airstrikes involving the United States, Iran, and Israel, prompted Dangote to raise its gantry price from N774 to N874 per litre. Consequently, retail pump prices across Nigeria climbed to as high as N937, though analysts note that the country avoided the chaotic queues seen in the UK amid similar geopolitical tensions. Industry stakeholders credit Dangote with insulating Nigeria from fuel shortages, ensuring that commercial activities continue uninterrupted despite global supply shocks.
Officials from Dangote Petroleum Refinery emphasized the broader benefits of domestic refining. They highlighted how local production reduces dependency on imports, protects the economy from foreign exchange pressures, and shields consumers from international market volatility. Despite a N100 price hike, the refinery noted that it absorbed 20% of global cost escalations to cushion Nigerians, while also facing challenges like limited crude supply from local producers, forcing reliance on costlier international cargoes.
Recent data underscores the growing significance of the Dangote Refinery in Nigeria’s energy landscape. In January 2026, domestic refineries supplied 40.1 million litres of petrol per day—exceeding imports for the first time in 13 months. Analysts point out that this marks a turning point in Nigeria’s energy security, as local refining now provides a buffer against the volatility of the global oil market, especially during crises like the ongoing US-Iran conflict.
Energy experts argue that Nigeria must improve crude production to sustain this momentum. Professor Emeritus Wumi Iledare and Professor Segun Ajibola emphasize that meeting production targets depends not only on government planning but also on securing oil assets, reducing operational disruptions, and incentivizing private investment. They caution that without increased local production and strategic management, Nigeria could struggle to maintain energy stability amid rising global fuel costs.
source: punch