Nigeria fuel prices surge 65% with Dangote refinery output

Nigeria's gasoline prices have reached record highs. Prices are up 65% in a short time. This happens even with the Dangote Petroleum Refinery now fully running. This refinery is Africa's largest. It can process 650,000 barrels of oil per day.

The price increase is due to problems in the Middle East. This war makes global oil prices higher. Shipping costs also go up. Nigeria has to import a lot of expensive crude oil. This is despite being Africa's biggest oil producer.

State-owned NNPC's oil production is tied to old loans. About 400,000 barrels per day go to pay international oil companies and banks. So, the Dangote refinery cannot get enough local crude. It needs 13-15 oil cargoes each month but only gets about five. The rest must be imported at high prices.

Nigeria also has no strategic fuel reserve. This makes the country vulnerable to price shocks. The government removed fuel subsidies in 2023. This change means people now face the full impact of higher prices.

Inflation in Nigeria is rising again. Transport and food costs have doubled. For example, fish and chicken prices have doubled. This affects ordinary people and businesses. In contrast, Ghana's fuel prices rose 10-17%. Kenya and South Africa saw smaller rises due to price controls.

The Dangote refinery sells fuel based on international prices. This includes freight and insurance. Its wholesale price rose 61% from early to late March. This means Nigerians now pay about GHS 1.83 per litre in Lagos and Abuja. This is the highest price ever.