Fuel shock hits Africa, demand for Nigeria’s petrol surges

Many African countries are now turning to Nigeria to buy petrol, as demand rises following global supply problems caused by tensions involving Iran.

The Dangote Petroleum Refinery is currently struggling to meet the high demand for fuel from countries like South Africa, as well as others within and outside Africa.

At the same time, the refinery has increased the price of petrol. It raised its ex-depot (gantry) price from ₦1,175 per litre to ₦1,245 per litre. The coastal price also went up.

The company said the price increase is due to rising global tensions, which have affected crude oil prices and transportation costs. The new prices started on March 21, 2026.

However, marketers who already have supply agreements backed by bank guarantees can still buy at the old price for now, as long as they meet certain conditions. They will later pay the price difference.

Experts believe this increase will likely lead to higher fuel prices at filling stations, as marketers pass the extra cost to consumers.

Even though the Dangote refinery was expected to stabilise fuel supply in Nigeria, the market is still affected by global oil price changes and supply disruptions.

Meanwhile, South Africa is trying to secure a long-term fuel supply deal with Nigeria. Other countries like Ghana and Kenya have also shown interest.

The global situation is affecting many countries. For example:

India is facing cooking gas shortages

Japan has limited supply of some fuel products

Some African countries depend heavily on fuel imports from the Middle East

In places like Ethiopia, the government has told citizens to use fuel carefully. In Somalia, fuel prices have almost doubled.

South Africa currently has some crude oil reserves, but not enough refined fuel stored for emergencies. The country is working on plans to improve this.

Overall, the situation shows how global conflicts can affect fuel supply and prices, even in countries with large refineries like Nigeria.