The Dangote Refinery has resumed the loading of Premium Motor Spirit (PMS), commonly known as petrol, onto trucks for oil marketers. This development comes after a temporary halt in operations due to the suspension of the Naira-for-Crude program, coupled with rising global crude oil prices and foreign exchange challenges. While ship-based loading continued on a dollar basis during the hiatus, the refinery has now introduced a “top-up” payment policy for oil marketers seeking to secure supplies of petrol.
According to industry sources, many companies, including major players like MRS Oil & Gas, have complied with the new arrangement. Vanguard investigations revealed that these companies were being loaded at a rate of N880 per litre as of yesterday. However, the resumption of truck-based loading has coincided with a sharp increase in petrol prices across Nigeria, reflecting broader economic pressures and supply chain disruptions.
Petrol prices have surged nationwide, with pump and depot prices reaching unprecedented levels. The latest price list obtained from MRS Oil and Gas by Vanguard shows that petrol is now being sold at up to N960 per litre at depots, while pump prices have climbed to N900 per litre and above. These adjustments, which took effect on March 28, 2025, underscore the widening gap between regional pricing and highlight the disparities in transportation costs.
Lagos State currently boasts the lowest petrol prices, with consumers paying N930 per litre at the pump. In contrast, states in the northern region are bearing the brunt of higher costs, with prices soaring to N960 per litre. Other regions also reflect varying rates based on logistics and distribution expenses. For instance, states in the South West—such as Ogun, Oyo, Osun, Ekiti, Kwara, and Ondo—are experiencing prices of N940 per litre. Similarly, residents in the South-South and South-East regions, including Edo, Abia, Akwa Ibom, Bayelsa, Rivers, Cross River, and Enugu, will pay N960 per litre, aligning them with some of the highest rates in the country.
The Dangote Refinery, a $20 billion project designed to revolutionize Nigeria’s energy landscape, has been at the center of efforts to reduce dependence on imported petroleum products. By producing locally refined fuel, the refinery aims to stabilize domestic supply and mitigate the impact of fluctuating global oil prices. However, recent operational challenges have exposed vulnerabilities within the system, particularly concerning foreign exchange management and payment structures.
Industry insiders explain that the “top-up” payment requirement stems from the need to address liquidity issues arising from the suspension of the Naira-for-Crude initiative. Under this program, Nigerian crude oil was exchanged for refined products, providing a cost-effective solution for local consumption. Its suspension, combined with the strengthening of the US dollar against the Naira, has forced refineries and marketers to recalibrate their strategies. As a result, companies purchasing petrol from the Dangote Refinery must now supplement their payments in dollars or equivalent funds to ensure uninterrupted supply.
Despite these measures, the financial burden is being passed down the supply chain, ultimately affecting end consumers. The steep rise in petrol prices has sparked concerns about affordability and inflationary pressures, particularly for households and small businesses already grappling with economic instability.
The resurgence of petrol loading at the Dangote Refinery marks a critical step toward addressing ongoing fuel shortages. However, the accompanying price hikes pose significant challenges for ordinary Nigerians. With the cost of living steadily increasing, the added expense of petrol threatens to exacerbate hardship, especially in rural and underserved areas where alternative energy sources are scarce.
Transportation remains a cornerstone of daily life in Nigeria, with millions relying on private vehicles, motorcycles, and public transport to commute and conduct business. Higher petrol prices inevitably translate into increased fares for passengers and elevated operating costs for commercial drivers. Additionally, industries reliant on diesel-powered generators face mounting expenses, further straining an already fragile economy.
Regional disparities in pricing further complicate matters. While Lagos benefits from relatively lower costs due to its proximity to refineries and logistical hubs, states in the north bear the additional weight of long-distance transportation fees. This imbalance not only widens the urban-rural divide but also underscores the urgent need for infrastructure investments to streamline distribution networks.
Against this backdrop, stakeholders are urging the government to intervene and cushion the impact of rising fuel prices. Suggestions include revisiting the Naira-for-Crude program, implementing subsidies for low-income households, and fostering collaboration between refineries and marketers to stabilize pricing mechanisms. Others advocate for accelerated investments in renewable energy solutions to diversify the country’s energy mix and reduce reliance on fossil fuels.
Critics argue that the current situation highlights structural weaknesses in Nigeria’s energy policy framework. They contend that without comprehensive reforms, similar crises may recur, undermining efforts to achieve sustainable growth and development. Meanwhile, the Dangote Refinery continues to play a pivotal role in navigating these challenges, serving as both a lifeline and a litmus test for the nation’s resilience.
As Nigeria grapples with the dual realities of supply constraints and escalating costs, the focus shifts to finding equitable solutions that balance the interests of producers, marketers, and consumers. The resumption of petrol loading at the Dangote Refinery offers a glimmer of hope, signaling progress in addressing immediate shortages. However, sustained stability will require bold policy decisions, robust regulatory oversight, and a commitment to fostering an inclusive energy ecosystem.
For now, Nigerians await further developments with bated breath, hoping that the promise of locally refined fuel translates into tangible relief rather than continued strain on their wallets. As the nation charts its course through turbulent waters, one thing is certain: the journey toward energy security remains fraught with obstacles—but also ripe with opportunities for transformative change.
