Looming Fuel Crisis: Petrol Prices in Nigeria Could Surge to N1,000/Litre

Nigerians are bracing for a potential surge in petrol prices, with costs possibly hitting N1,000 per litre due to the expiration of a critical naira-for-crude oil agreement between the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery. This deal, which ended in March 2025, had helped stabilize fuel prices by allowing crude oil payments in naira rather than dollars. Its expiration, coupled with rising global oil prices, has already pushed petrol prices to between N930 and N960 per litre across regions

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Analysts warn that without the renewal of this agreement, the sector will face heightened exposure to international crude price fluctuations and exchange rate volatility. The Dangote Refinery, which recently began operations, is expected to play a pivotal role in addressing supply issues and determining future pricing strategies.

The economic ripple effects of soaring petrol prices include increased transportation costs, higher consumer goods prices, and worsening inflation. The NNPC has yet to comment on the renewal of the agreement, leaving consumers and stakeholders uncertain about what lies ahead.