Nigerians May Pay ₦1,000 per Litre as Fuel Crisis Brews Over NARTO Strike, Global Oil Tensions
Nigerians may be heading for another round of fuel scarcity and price hikes, with petrol potentially soaring to around ₦1,000 per litre, as multiple developments threaten the country’s energy stability.
Amid surging global oil prices triggered by renewed Middle East tensions, the Nigerian Association of Road Transport Owners (NARTO) has announced a halt to lifting petroleum products from the Dangote Refinery, effective Monday, June 17, 2025.
This move directly impacts fuel distribution across the country and may lead to logistics breakdowns, especially as the Dangote Refinery prepares to launch a large-scale fuel distribution operation powered by 4,000 brand-new compressed natural gas (CNG) tankers.
Middle East Conflict Drives Oil Prices Up
Global oil markets were rattled last week after Iran launched missile strikes on Israel, escalating regional conflict. In response, oil prices jumped over 10%, with Brent crude surging by over 8% and Nigerian crude grades like Bonny Light averaging $78 per barrel well above the government’s $75 budget benchmark.
While this could boost Nigeria’s foreign exchange revenue potentially adding an extra $480 million to its coffers the gains come at a cost for consumers. In January, when oil prices last peaked, petrol retailed at ₦990 per litre in parts of the country.
NARTO Halts Tanker Operations Over Lekki E-Call Up Charges
In a statement issued on Sunday, NARTO National President Lawal Othman confirmed the withdrawal of services, citing an unresolved dispute with the Lagos State Government over a new ₦12,500 E-Call Up System fee for trucks on the Lekki–Epe corridor.
NARTO, which had counter-proposed ₦2,500 per truck, said its members would suspend all truck programming until a fairer agreement is reached.
“Effective June 16, 2025, all transporters are instructed to halt programming of trucks for the Lekki–Epe route, which directly affects Dangote Refinery,” the statement read.
Dangote Refinery Disrupts Status Quo with CNG-Powered Tankers
Meanwhile, Dangote Petroleum Refinery unveiled a major entry into fuel distribution, previously dominated by NARTO and private tanker operators. From August 15, 2025, Dangote will begin large-scale product distribution using 4,000 CNG tankers and over 100 booster trucks across Nigeria.
The company said the strategic move is aimed at eliminating third-party logistics costs, improving fuel access, and promoting cleaner energy alternatives. Fuel stations sourcing from Dangote will benefit from free logistics support, and major buyers purchasing at least 500,000 litres will get an equal volume on credit, payable within two weeks with a bank guarantee.
Impact on Economy and Fuel Supply Chain
The fallout between NARTO and Lagos State could create a serious disruption in the petroleum logistics chain, particularly for Dangote’s 650,000 barrels-per-day refinery. Industry watchers say the clash, combined with geopolitical pressures, could revive dormant petrol queues, raise fuel prices, and impact supply to SMEs, aviation, telecoms, and rural areas.
According to Q1 2025 data from the National Bureau of Statistics (NBS), crude oil exports accounted for 62.89% of Nigeria’s total exports, valued at ₦12.96 trillion—a drop from ₦15.49 trillion in Q1 2024.
This decline in export volume, combined with growing reliance on imported refined products, highlights the urgency of domestic refining stability and a reliable distribution network to meet national demand.
What to Expect Next
With NARTO’s withdrawal, the Lekki corridor gridlock, and the global oil price spike, fuel prices at the pump could exceed ₦1,000 per litre if immediate interventions are not made. While Dangote’s logistics overhaul offers a medium-term solution, the short-term supply gap could strain Nigeria’s already fragile energy system.
