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Why Petrol Prices Keep Rising in Nigeria Despite Dangote’s Mega Refinery

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Despite the presence of the Dangote Refinery, Nigerians are now paying about 65 percent more for petrol, as rising global oil prices and supply challenges continue to push costs upward.

The development comes amid increasing pressure on global energy markets driven by the ongoing Middle East conflict, which has sent crude oil prices soaring and significantly raised the cost of fuel production.

SEE MORE: Dangote Pushes Industrial Growth, MSME Support at Enugu Int’l Trade Fair

The Dangote Refinery, which began operations in 2024, was expected to reduce Nigeria’s dependence on imported fuel and bring down pump prices.

At one point, it supplied over half of the country’s petrol demand, marking a major shift in Nigeria’s downstream sector.

However, industry realities have limited its impact on price stability.

In a statement, the refinery’s management blamed the surge in petrol prices on high crude costs and limited local supply.

“The high crude cost is compounded by the fact that Nigeria’s upstream producers have failed to supply crude oil to the refinery as required,” the company said, noting that it has been forced to source crude from international traders at a premium.

This reliance on imported crude has exposed the refinery to global price shocks, ultimately affecting the cost of petrol in the domestic market.

Further highlighting the challenge, Dangote Refinery’s Chief Executive Officer, David Bird, revealed that the facility is receiving significantly fewer local crude shipments than agreed.

“We try and maintain some stability within a commercially acceptable range, but all our cost inputs—from crude to freight and insurance—are impacted,” he said.

According to him, the refinery currently receives only about five cargoes of crude monthly, far below the 13 to 15 cargoes initially expected from local producers.

Analysts say the situation underscores a major structural issue in Nigeria’s oil sector, where inadequate domestic crude supply continues to hinder the benefits of local refining.

While the refinery has demonstrated strong capacity and even begun exporting refined products, its dependence on foreign crude has limited its ability to cushion Nigerians from rising global prices.

With petrol prices now about 65 percent higher, consumers are feeling the impact, raising fresh concerns over affordability and energy security.

Experts warn that until Nigeria ensures a steady supply of crude to local refineries, the promise of cheaper fuel may remain out of reach.

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‘Celebrate This Poor Man’ – Shettima Defends Tinubu Over Economic Crisis

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Vice President Kashim Shettima has urged Nigerians to celebrate President Bola Tinubu, saying his leadership saved the country from a potential implosion.

Shettima said Nigeria’s economy had been teetering on the edge of collapse before Tinubu’s intervention, adding that the country could have faced a different situation.

“The economy was teetering on the edge of collapse, we were on a cliff edge,” the Vice President said.

ALSO READ: Subsidy Removal, FX Reforms Driving Fresh Oil Sector Investment – Shettima

“So he literally saved the nation from an implosion. That could have been the scenario. So, instead of demonizing him, Nigerians ought to celebrate this poor man.”

Shettima also called for a return to the drawing board, expressing confidence in the leadership’s commitment and the prospects for the 2027 elections.

“I believe on the bottom of my heart that with this presentation I have seen, and with the commitment of our leadership, by the grace of God, we are going to win,” he said.

Speaking about the 2027 elections, the Vice President reminded his audience that social media platforms should not be mistaken for actual polling stations.

“There are no polling stations on Facebook or Instagram,” he said.

Shettima also expressed gratitude for the efforts made towards promoting the cause of the 2027 elections.

 

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FG Withdraws Charges Against ‘Fake Agency’ DG, Adeniyi Adeyemi

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Contempt: Four SANs to be Served by Courier

Following observed mis-steps, the Federal Government of Nigeria has withdrawn the eight-count criminal charge brought against the alleged fake Director General (DG) of the Presidential Foreign Intervention Promotion Council (PFIPC), Adeniyi Adeyemi.

Biztellers reports that the matter, in accordance with the counsel of the Attorney General of the Federation (AGF) and Minister of Justice, Prince Lateef Olasunkanmi Fagbemi, (SAN), the matter will be filed at the High Court of the Federal Capital Territory (FCT), instead of the Federal High Court (FHC).

Consequently, upon an unopposed application for termination by the prosecution counsel and Director of the Public Prosecution of the Federation (DPPF), Rotimi Oyedepo (SAN), on Monday, Justice Mohammed Umar of a Federal High Court, Abuja on Monday, struck out the matter.

READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future

In a motion for the termination of the charges, Oyedepo informed the court that the Attorney General of the Federation (AGF) and Minister of Justice has carried out a review of the case file of Adeyemi and the charge filed by the Inspector General of Police (IGP) and found some loopholes.

The DPPF added that the documents allegedly forged by Adeyemi during his operations of the fake agency are those that can be prosecuted by the High Court of the Federal Capital Territory (FCT).

He also informed the court that a new charge has been filed at the High Court of the FCT and that Adeyemi would be expeditiously arraigned afresh.

He therefore urged the judge to strike out the charge as required by law.

Following no objections from Ibrahim Angulu (SAN), who stood in for Adeyemi, Justice Umar subsequently terminated the charge.

Adeniyi, 38, was being tried alongside two others whose whereabouts are unknown, on charges bordering on conspiracy and forgery.

The two others said to be at large were identified as Femi (surname unknown) and Anu (surname unknown).

The charge marked: FHC/ABJ/CR/25/2025, was entered against the defendant by the DPPF.

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Shell Identifies Keys to Nigeria’s Energy Future

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To secure a bright energy for her teeming population, Nigeria must sustain the momentum of reform, accelerate investment, and deepen partnerships.

This view was expressed by Managing Director, Shell Nigeria Exploration and Production Company of Nigeria Limited (SNEPCo) Ronald Adams in Lagos at the weekend.

Delivering a keynote address at the Africa Energy Conference (AEC) of the Lagos Business School (LBS), Adams called for regulatory certainty through efficient execution of reforms, sustained investment appeal to enable projects to move more swiftly from opportunity to production and partnership by operators, regulators, NNPC Limited and communities to unlock the full value of Nigeria’s resources.

Adams cited Nigeria’s huge oil and gas resources as an advantage but pointed out: “Resources alone do not guarantee prosperity. Prosperity comes when resources are matched with investment, technology, sound policy and disciplined execution. Success will be determined not by the size of our resources, but by our ability to convert them into investment and economic growth.”

Adams pledged the support of Shell towards a bright energy future of Nigerians. He said: “For more than six decades, Shell has been part of Nigeria’s energy journey. Together with our partners, we have helped develop major energy infrastructure, supported Nigerian businesses, invested in talent, and contributed to economic development. Bonga remains a powerful example of what technology, partnership and Nigerian capability can achieve in deepwater operations. Today, that story continues through Bonga North.”

READ ALSO: ADF Targets 5 Million Students, 2 Million Vulnerable Women

Issuing a clarion call for action by all stakeholders, he added: “The world is not standing still. Capital is moving, technology is advancing and competition is intensifying. The countries that attract investment tomorrow are those that improve competitiveness today. Nigeria has begun that journey. Our task is to sustain the momentum and translate reform into projects, projects into growth, and growth into shared prosperity.”

The conference, the 4th in the series had at its theme; “Securing Nigeria’s Energy Future: Policy Reform, Capital Mobilisation, and Pathways to a Sustainable Power and Energy Market” and was attended by top government officials, industry captains, energy professionals, and students.

Lagos State Deputy Governor Obafemi Hamzat represented Lagos State Governor Babajide Sanwo-Olu as the guest of honour. SNEPCo was a principal sponsor of the Africa Energy Conference (AEC) and mounted a well-received exhibition on its deepwater operations and social investments across Nigeria.

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