Dangote Refinery Supply Glitch Forces New Fuel Price Hike: NNPCL Sells Petrol at N955 Per Litre

The ongoing volatility in Nigeria’s downstream petroleum sector has escalated following a supply disruption at the Dangote Refinery, leading to an immediate and significant increase in the pump price of petrol, a move that is expected to severely compound the nation’s cost of living crisis.

The state-owned Nigerian National Petroleum Company Limited (NNPCL) and other key marketers, including Ranoil and Mobil, have adjusted their prices upwards. Dependable NG reports that NNPCL retail outlets in Abuja, such as those in Gwarimpa and on the Kubwa Expressway, are now selling Premium Motor Spirit (PMS) at N955 per litre, a jump from the previous N905. This adjustment, which reflects a 5.5 per cent increase, is the second major hike in less than eight days.

The ripple effect has been felt across the Federal Capital Territory and Lagos, with other filling stations now selling between N920 and N930 per litre. This development comes as the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has also soared to as high as N3,000 per kilogramme in major cities, adding to the mounting pressure on Nigerian households.

The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, pointed directly to the unavailability of supply from the Dangote Refinery since Saturday as the catalyst for the price volatility. “For the past two days, our members have been unable to get Dangote Refinery petrol. It might be the reason for the hike,” he stated, highlighting the market’s immediate dependence on the 650,000-barrel-per-day facility.

Echoing the uncertainty, the national president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, described the latest hike as “artificial.” He noted that the arrival of the Dangote Refinery, while positive, has introduced a fresh set of market challenges, requiring all stakeholders to collectively work out a “seamless process” to stabilise the petroleum sector.

With the nation’s headline inflation and food inflation at 20.1 per cent and 21.87 per cent, respectively, the dual hike in fuel and cooking gas prices paints a gloomy economic picture, further straining the ability of millions of Nigerians to afford basic commodities. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) previously indicated that the Dangote Refinery contributes an average of 20 million litres of petrol to the nation’s 48 million litres daily consumption, making its operational glitches a significant factor in national price stability.