Nigerians to endure higher fuel prices as Dangote Refinery announces fresh hike

Nigeria is set to face another round of fuel price hikes, following the announcement from Dangote Refinery on Friday.

This marks the fourth increase in March 2026, coinciding with the ongoing Iran-United States-Israel conflict.

The refinery, with a daily production capacity of 650,000 barrels, informed marketers that the new price would be N1,245 per liter, up from N1,175.

The price adjustment is set to take effect on Saturday, March 21, 2026.

The refinery attributed the hike to global geopolitical tensions in the Middle East, which have caused a surge in crude oil prices.

As of Saturday morning, Brent crude was priced at $112 per barrel, and West Texas Intermediate at $98 per barrel.

Chinedu Ukadike, spokesperson for both the Independent Petroleum Marketers Association of Nigeria and the Natural Oil and Gas Suppliers Association of Nigeria, confirmed the new price increase.

This is the fourth time Dangote Refinery has raised fuel prices this month, with previous hikes taking the price from N774 to N875, then N995, N1,175, and now N1,245 per liter.

This means that marketers and retailers who rely on Dangote petrol will adjust their pump prices accordingly.

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According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Dangote Refinery supplied 61 percent of the country’s domestic petrol supply in February 2026, amounting to 39.6 million liters per day.

This price hike will mean Nigerians will pay even more for fuel starting from Saturday, with petrol prices expected to rise by approximately N70, pushing prices to between N1,331 and N1,400 per liter.

Experts discuss the cause of the fuel price hike

Prof. Wumi Iledare, an expert in petroleum economics, has explained that the fuel price increase is a direct result of global crude oil market dynamics.

He noted that the surge in Brent crude prices, which recently surpassed $110 per barrel due to the escalating Middle East tensions, made the adjustment almost inevitable.

Iledare emphasized that the Nigerian fuel market is now more market-driven and that the recent price hikes reflect international oil market realities rather than local policy failures.

He further explained that local refining, while beneficial, does not shield Nigeria from global oil price volatility.

Calls for structural reforms in Nigeria’s energy sector

Prof. Iledare stressed the importance of long-term energy reforms, including improving energy efficiency and transitioning to alternative fuels such as gas.

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He also urged Nigerians to adjust to the current realities of the energy market by adopting more efficient consumption patterns.

In a similar vein, Prof. Godwin Oyedokun attributed the price increase to the global oil market disruptions caused by geopolitical tensions.

He warned that Nigeria’s continued reliance on the international oil market would expose the country to external shocks.

Prof. Oyedokun advised the government to consider targeted interventions to cushion the impact of rising fuel prices.

These include reducing taxes on petroleum products and stabilizing the foreign exchange market.

In the long term, he suggested boosting crude oil production, strengthening domestic refining competition, and investing in alternative energy sources.

Both experts agreed that the era of artificially low fuel prices is over and that Nigerians must adapt to this new reality.

A changing landscape for Nigeria’s energy security

Prof. Iledare concluded by calling for greater accountability and consistency in government policies, while also highlighting the need for broader sector reforms to ensure Nigeria’s energy security.

He urged the government to seize the opportunity to strengthen the country’s energy sector beyond refining, particularly in terms of energy diversification.

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