- Title: Despite Dangote refinery, Nigeria sees Africa’s biggest gasoline price jump
- Date: 30th March 2026
- Summary: TAIPEI, TAIWAN (MARCH 30, 2026) (REUTERS) ***WARNING: CONTAINS FLASH PHOTOGRAPHY*** VARIOUS OF U.S. SENATORS JEANNE SHAHEEN, JOHN CURTIS, THOM TILLIS AND JACKY ROSEN WALKING DOWN STAIRS WITH SECRETARY-GENERAL OF TAIWAN NATIONAL SECURITY COUNCIL JOSEPH WU WU STANDING AT PODIUM SENATORS SHAHEEN AND TILLIS LOOKING ON SENATOR CURTIS WALKING TO PODIUM (SOUNDBITE) (English) U.S.
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- Keywords: dangote diesel electricity fuel gas gasoline generator iran israel lagos lifestyle nigeria ocea oil people petrol refinery sea usa vessel war water
- Location: LAGOS, NIGERIA
- City: LAGOS, NIGERIA
- Country: Nigeria
- Topics: Africa,Commodities Markets,Economic Events
- Reuters ID: LVA004761126032026RP1
- Aspect Ratio: 16:9
- Story Text: PART AUDIO QUALITY AS INCOMING
As fuel prices surge to record highs, Nigerian barber Wale Johnson fires up his generator and explains to customers why a haircut now costs 50% more than it did just weeks ago.
Johnson, who has been cutting hair for 17 years, has raised his prices from 0.72 USD to 1.09 USD as pump prices jumped over 60% in March alone, the steepest increase among major African economies.
His weekly cost increased to 35 USD from 20 USD, driven by petrol costs and transportation expenses that have pushed up prices for everything from after-shave to clipper oil.
"Everybody has to pay 1,500 naira because of the situation in Nigeria now, and they all understand, even though some of them are not ready to comply but they don't have any choice," Johnson said at his Lagos barbershop.
His shop, situated in the densely populated Alimosho district in Lagos, vast residential areas are plunged into darkness, with people navigating dimly lit streets beneath power lines that deliver little electricity.
The lack of reliable power forces businesses like Johnson's to depend on costly generators, compounding the impact of soaring fuel prices.
For Johnson, who has adjusted his closing time to manage rising electricity costs, the situation is particularly frustrating for an oil-producing nation.
"To us Nigerians, that we have crude oil and a refinery by our Nigerian man, I think it should be more lesser (not as 'bad' as this) than this," he said as he worked his clippers through a customer's hair.
Nigeria has recorded the sharpest jump in gasoline prices among major African economies after an Iran‑related oil shock, as deregulation leaves pump prices tracking global markets despite the start‑up of the Dangote refinery.
Dangote, Africa’s largest petroleum refinery, is operating at its full capacity of 650,000 barrels per day, with a marked increase in volumes supplied to Nigeria’s domestic market since March, even as it continues to expand fuel exports across Africa; exports are currently running at about 214,000 bpd, slightly below last year’s average of 219,000 bpd.
But the surge in prices shows the limits of domestic refining in the face of global price shocks in Nigeria's deregulated fuel market, highlighting gaps such as the lack of strategic reserves.
Explaining the higher prices, Dangote refinery managing director David Bird said the company can source only about five crude cargoes a month locally, far short of the 13–15 required and often without its preferred grades.
"On volume, so right now we get an allocation of five, so we deal with, let's say 950-million-barrel cargoes, we get five, we could easily get 13 or more,’’ Bird said.
Dangote sets its gasoline prices in line with international gasoline and crude benchmarks, as well as freight and insurance costs, excluding foreign‑exchange charges only on crude sourced locally.
Since the Iran conflict escalated, the refinery has raised its ex‑depot price by about 61% between early and late March.
Consumers are therefore still paying prices that broadly reflect import‑parity levels, even with some local crude supply.
Nigeria’s exposure stands out across the region. Between March 2 and March 21, gasoline prices rose by about 10–17% in Ghana, were unchanged in Kenya due to price controls, and increased by around 1% in South Africa, compared with a 65% surge in Nigeria, where pump prices rapidly absorbed the Iran‑driven shock under deregulation.
But energy lawyer Ayodele Oni said the refinery's ability to shield Nigeria from global shocks is limited because it cannot source enough crude domestically.
"I understand that the refinery, Dangote Refinery isn't getting sufficient volumes of crude here. So, they need to also import crude, and that then means it adds to the cost," Oni said.
Oni said that while other non-producing countries like South Africa also import crude, Nigeria's sharper price spike may reflect both a delayed adjustment from artificially low subsidized prices and excessive domestic fees and levies.
"One of the points may well be that in the first place, there was already a need for a price adjustment, which weren't done, and which South Africa was maybe already at the price it should be," he said. "The other argument is still that our local costs are too high. Fees, charges, ministries, departments, and agencies of federal government need to rethink their fees and levies."
Businesses and households are the most hit in Nigeria, as gasoline and diesel are used to power generators in a country where grid electricity is shaky.
The cost of transport and some food items have already doubled, likely re-igniting inflation, which had been trending downwards from last year's record highs.
Ride‑hailing drivers in Lagos last week staged protests, while businesses and labour unions have urged the government to roll out emergency relief, including tax incentives for refiners, more naira‑based crude supply and temporary cushioning measures, while accelerating longer‑term energy reforms.
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