Fuel Price Set to Rise as Dangote Refinery Suspends Petrol Sales in Naira

Fuel price is set to rise as Dangote Refinery has suspended petrol sales in Naira.

NewsOnline Nigeria reports that Nigerians are bracing for yet another fuel price hike as the Independent Petroleum Marketers Association of Nigeria (IPMAN) announced that its members will adjust pump prices nationwide following Dangote Refinery’s suspension of petrol sales in Naira.

The National President of IPMAN, Abubakar Maigandi, confirmed the development in an interview on Saturday, noting that marketers received an official notice from the refinery on Friday evening. The notice, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, stated that Premium Motor Spirit (PMS) sales in Naira would be suspended from Sunday, September 28, 2025, due to the exhaustion of the company’s crude-for-Naira allocation.

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“Yes, we received the email from Dangote Refinery on the suspension of Premium Motor Spirit sales in Naira. The implication is that our members will announce a fuel price increase. It may take effect from Monday if the Federal Government does not intervene,” Maigandi told DAILY POST.

With the suspension, pump prices in Lagos and Abuja, currently at N865 and N910 per litre respectively, are expected to rise under a new pricing template unless the Federal Government addresses the refinery’s allocation concerns.

The refinery, which has a production capacity of 650,000 barrels per day, explained in its notice:

“We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward. Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.”

The refinery further advised customers who had made advance Naira payments for petrol supply to request refunds.

This development comes amid heightened tensions between Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which has accused the refinery of unfair labour practices following the dismissal of hundreds of workers.

Analysts warn that the combined effect of the refinery’s suspension of Naira sales and looming supply disruptions could worsen inflationary pressures and deepen the fuel crisis across the country.