By George Omagbemi
Petrol prices have climbed to around ₦1,400 per litre in some locations, leaving many Nigerians asking a simple question: Why is fuel still expensive when Nigeria now has a major local refinery?
Dangote Industries President Aliko Dangote has offered his explanation, pointing to the wide price gap between Nigeria and neighbouring countries and the continued incentive for petrol smuggling.
Speaking in an interview aired on Arise TV on September 15, 2026, Dangote said petrol in neighbouring countries could cost 30 to 50 per cent more than in Nigeria. He specifically cited Niger, where he said petrol was about 20 to 25 per cent more expensive.
Using his ₦1,350-per-litre example, a 20–25 per cent higher price would translate to approximately ₦1,620–₦1,688 per litre across the border. Dangote’s argument is that such a difference creates a strong incentive for traders to buy petrol in Nigeria and resell it outside the country for a quick profit.
This comes after Dangote Refinery increased its petrol gantry price from ₦1,265 to ₦1,350 per litre on September 12. Pump prices subsequently rose to about ₦1,395 and above at some filling stations.
However, local refining does not automatically guarantee cheap petrol. The price consumers pay is also affected by crude oil costs, exchange rates, transportation, distribution and wider market conditions. Vanguard reported that Dangote said his refinery itself buys crude at prevailing international prices and cannot indefinitely subsidise petrol.
Dangote also warned that the Middle East crisis could create a bigger problem with fuel availability, rather than price alone. He assured Nigerians that his refinery would continue supplying the domestic market and said there would be no shortage from its operations.
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