Dangote Refinery Issues Spark Fuel Price Hike, Shutdowns

Several Nigerian filling stations relying on Dangote Refinery’s petrol have been shut down as the Lekki-based refinery faces operational setbacks, raising concerns over fuel supply across the country.

According to a Bloomberg report on Thursday, the $20 billion, 650,000-barrel-per-day refinery reduced its crude intake in October 2025 to fewer than 300,000 barrels per day, down 50% from 600,000 barrels per day in July, and less than half of the plant’s full capacity. Analysts predict that these operational challenges could persist into 2026.

“Nigeria’s huge Dangote oil refinery has been buying a lot less crude lately amid operational setbacks, something analysts say could persist into next year and keep supporting gasoline prices,” Bloomberg reported.

The refinery’s crude intake directly impacts Nigeria’s petrol supply, which explains the sharp drop in fuel availability in the domestic market.

IIR Energy noted that the refinery’s residue fluid catalytic cracker unit has been challenged since late August, leading to petrol production outages. While the unit is expected to resume operations this week, significant maintenance work remains, with another shutdown projected for January 2026.

“European gasoline has been extremely strong as a result of Dangote’s issues,” said Neil Crosby, analyst at Sparta Commodities.

A DAILY POST correspondent reported that MRS filling stations in Abuja, including Kubwa and the Lugbe Expressway, were closed as of Thursday, October 16, 2025, due to lack of fuel supply from Dangote Refinery. A manager confirmed the development anonymously, noting reliance on the refinery since the start of its fuel distribution scheme.

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Other retail partners, such as Optima and Ardova filling stations, have been sourcing fuel from major oil markets to remain operational.

“It is true we are yet to get supply from the refinery. We rely on it 100 per cent… Hopefully we will get supply on Friday or at the weekend,” the manager said.

The fuel shortage has driven prices up across the country. MRS and other Dangote Refinery retail partners increased petrol prices to ₦950 per litre on Wednesday, up from ₦851 in Abuja. Over the week, other major filling stations, including NNPC Limited, AA Rano, Ranoil, Total, Mobil, Empire, and NIPCO, raised pump prices to between ₦940 and ₦955 per litre in Abuja and surrounding areas.

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The national presidents of the Independent Petroleum Marketers Association of Nigeria (Abubakar Maigandi) and the Petroleum Products Retail Outlets Owners Association of Nigeria (Billy Gillis-Harry) attributed the latest fuel price hike to a temporary supply glitch in the country.