Petrol Jumps to N1,430/Litre as Dangote Hike Sparks Transport, Food Cost Fears

By Victor Idajili

Nigerians woke up to higher fuel costs over the weekend as petrol prices surged to as much as N1,430 per litre, following a new price adjustment by Dangote Petroleum Refinery.

The refinery raised its gantry price for Premium Motor Spirit from N1,265 to N1,350 per litre an N85 or 6.7% increase. The hike came amid rising global crude prices and renewed tension around the Strait of Hormuz, a major oil transit route.

The timing is notable because Dangote is set to unveil a public offering on Tuesday, September 15, 2026.

 
The impact hit commuters first. On Lagos-Ogun routes, fares nearly doubled on Sunday.

Trips that cost N200 to N500 jumped to between N500 and N1,200. On the Mowe-Oshodi and Mowe-Mile 2 routes, fares climbed from around N400–N500 to about N1,000. 

Some passengers said they were stranded after failing to budget for the sudden increase.  
“What the price will be tomorrow morning, Monday, only God can tell,” one commuter said.

With millions depending on road transport, even small fuel increases quickly push up fares.

Economists warn the fuel hike will feed into food and logistics costs. Most farm produce moves by road, so higher diesel and petrol prices raise the cost of getting goods from farms to markets.

Manufacturers, retailers and service providers also face higher operating costs and are likely to pass them on to consumers.

Dr Aliyu Ilias, a development economist, said the increase will show up in the next inflation figures if nothing is done to absorb it.  
“The more prices increase, the more the cost of producing goods, especially food, will rise because everything is affected by transportation costs,” he said.

Checks in Lagos, Ogun and Abuja showed stations adjusting upward. 
In Abuja, MRS moved from about N1,350 to N1,395 per litre. NIPCO sold at around N1,430, while some Mobil stations were at N1,400.

An MRS attendant said prices could rise further once new stock arrives. “We are currently selling our old stock at N1,395 per litre, but from tomorrow, once the new stock arrives, the price will be higher,” she said.

Dangote’s new gantry price is also now above the estimated landing cost of N1,311 per litre, adding pressure on other marketers.

 
Brent crude has climbed above $100 per barrel and was recently near $108, driven by Middle East tensions. Attacks near the Strait of Hormuz and on Saudi Arabia’s East-West Pipeline have made markets nervous about supply disruptions.

Because the waterway moves a large share of global oil and LNG, any prolonged shutdown would hit prices worldwide — including Nigeria.

Former OATUU Secretary-General Owei Lakemfa said Nigeria, as a crude producer with a domestic refinery, should be less exposed to global shocks. He argued that refining locally should cut out shipping, insurance and forex costs tied to imports.

He also warned about market concentration in the downstream sector and urged regulators to stop arbitrary price increases.

IPMAN’s National Publicity Secretary, Chinedu Ukadike, said marketers are struggling with frequent price changes from Dangote, which makes stock planning difficult.

 
The hike comes as households are already battling high living costs. Beyond the pump, the concern is what commuters pay to get to work, what traders pay to move goods, and what families pay for food.

Domestic refining was meant to reduce reliance on imports, but refiners are still tied to global crude prices unless the government creates a buffer.

With Brent above $100 and tensions in the Middle East unresolved, further increases in pump price remain possible unless oil markets stabilize or supply improves locally.