"Nigerian Filling Stations Close as Dangote Refinery Faces Operational Challenges Amid Fuel Price Surge"

Published on October 17, 2025 at 07:26 AM
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Nigerian filling stations that rely on Dangote Refinery premium motor spirit, petrol, have been shut down as the 650,000-barrel-per-day refinery faces operational challenges.

Bloomberg on Thursday reported that the $20 billion Lekki Lagos-based refinery reduced its crude intake in October 2025 to fewer than 300,000, 50 per cent down from 600,000 barrels per day in July, and is less than half the plant’s capacity.

The newspaper report confirmed that the largest African refinery is faced with operational challenges which analysts predict could persist into next year.

“Nigeria’s huge Dangote oil refinery has been buying a lot less crude lately amid operational setbacks, something analysts say could persist into next year and keep supporting gasoline prices. Dangote is expected to purchase fewer than 300,000 barrels a day of crude this month, according to tanker-tracking data and cargo allocation lists,” the report said.

The report noted that the volume of crude purchased by the refinery is crucial to the market, as it plays a significant role in determining the nation’s petrol supply, suggesting a reason why fuel supply in the Nigerian market dropped sharply.

According to IIR Energy, the Dangote Refinery’s residue fluid catalytic cracker unit has been challenged since late August, resulting in petrol production outages; however, it is expected to be back up this week.

IIR Energy stressed major work remains to be completed on the gasoline-making unit and that it would have to shut down again in January 2026.

“European gasoline has been extremely strong as a result of Dangote’s issues,” Sparta Commodities analyst Neil Crosby said.

DAILY POST correspondent gathered that MRS filling stations in Abuja, Kubwa, and the Lugbe Expressway are shut down over non-supply of fuel by Dangote Refinery as of Thursday, October 16, 2025.

A manager confirmed the development to DAILY POST in anonymity.

According to him, other retail partners of Dangote Refinery, such as Optima and Ardova filling stations, had to rely on supply from major oil markets to remain wet.

“It is true we are yet to get supply from the refinery. We rely on it 100 per cent. It has been like that since the refinery’s fuel distribution scheme started.

“Hopefully we will get supply on Friday or at the weekend,” he added.

DAILY POST recalls that MRS and other Dangote Refinery’s retail partners increased fuel price to N950 per litre on Wednesday, up from N851 in Abuja.

Over the week, Nigerian National Petroleum Company Limited, AA Rano, Ranoil, Total, Mobil, Empire, NIPCO and other filling stations had to between N940 and N955 per litre in Abuja and environs.

Earlier the national presidents of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria, Abubakar Maigandi and Billy Gillis-Harry, respectively, confirmed to DAILY POST that a in the country is the reason for the latest fuel price hike.

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