Petrol Hits N1,500 Per Litre in Northern States as Dangote Refinery Raises Prices Four Times in 22 Days

Petrol now sells above N1,500 per litre in several northern states, while motorists in major cities pay around N1,430, as rising crude oil costs and repeated gantry price hikes push up pump prices across Nigeria. The increases are already feeding into transport costs, with warnings that food and other essentials could follow.

The pressure is heaviest in the North. In parts of Damaturu, Yobe State, petrol sells for between N1,500 and N1,520 per litre. Kano, Sokoto and Borno have reached about N1,500. Taraba is recording N1,500 to N1,700 per litre, while motorists in Mubi, Adamawa State, reportedly pay as much as N1,850. Kaduna, Benue, Kogi, Plateau, Bauchi and Rivers are among other states where prices have moved above N1,400 per litre.

Transport Fares Already Rising

The retail adjustments followed Dangote Petroleum Refinery's decision to raise its petrol gantry price from N1,265 to N1,350 per litre. Since August 21, the refinery has moved the price from N1,165 to N1,185, then N1,200, N1,265 and finally N1,350. That is a cumulative increase of N185 per litre, or about 15.9%, in 22 days.

Commercial tricycle operators in Kano have reportedly raised fares by about 50% on some routes. Commuters in Benue are also facing higher transport costs.

Marketers Warn of Further Increases

Fuel marketers say pump prices could climb further if international crude prices stay elevated. Chinedu Ukadike, publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said higher crude costs would continue to influence petrol prices. He urged the federal government to consider supplying crude oil to domestic refineries at slightly below international market prices, and to review some statutory charges affecting petroleum-product distribution.

The Nigeria Labour Congress (NLC) has called for urgent measures to cushion the impact on workers and businesses. NLC President Joe Ajaero asked for reasonable wage awards, increased crude supply to local refineries in naira and an expansion of Nigeria's petroleum storage capacity. The labour centre said emergency interventions, including subsidies where necessary, should not be ruled out. It warned that persistent petrol increases could push up food, rent, school fees and transportation costs.

At 11 a.m. WAT on Thursday, Brent crude traded at $104.30 per barrel, down 1.57%, while West Texas Intermediate stood at $101.30, down 1.17%. Both benchmarks had approached $110 earlier in the week.

Smuggling in Focus

Dangote Refinery owner Aliko Dangote has identified cross-border petrol smuggling as a factor affecting Nigeria's fuel market. He said petrol prices in neighbouring countries were between 30% and 50% higher than in Nigeria, creating an incentive for products supplied locally to be moved across the border.

"There's still a lot of smuggling of the same petrol we are producing to our neighbouring countries," Dangote said.

Depot operators had earlier responded to the refinery's gantry price increase with hikes of up to N150 per litre, pushing prices at some filling stations to N1,400.

For Nigerian households and businesses, the latest round of increases means another squeeze on transport and logistics costs, which typically pass through to market prices for food and other goods. How quickly that happens will depend on whether crude prices ease and whether marketers absorb part of the cost.