Juliet Ezeh
Nigeria’s fuel market recorded a sharp contrast in April 2026, as petrol prices climbed to as high as N1,413 per litre in some parts of the country, even as domestic refining capacity witnessed a major boost.
Latest industry data shows that Maiduguri recorded the highest petrol price nationwide, highlighting persistent regional disparities in fuel distribution and pricing. The development comes at a time when global oil market disruptions and foreign exchange pressures continue to shape Nigeria’s downstream sector.
Why Petrol Prices Remain High in Nigeria
The surge in petrol prices is largely linked to external and structural factors affecting supply and cost.
Global crude oil prices rose significantly following geopolitical tensions in the Middle East, which disrupted key oil shipping routes and tightened supply. As a result, crude oil prices crossed the $100 per barrel mark during the period under review.
At the same time, Nigeria’s dependence on foreign exchange for petroleum pricing continues to play a critical role. With the naira trading above N1,300 per dollar, the landing cost of imported fuel remains high, directly impacting pump prices across the country.
Logistics challenges also contribute heavily to price differences. Cities located far from coastal supply points, such as Maiduguri and Sokoto, often experience higher transportation costs, which are ultimately passed on to consumers.
Regional Price Disparities Raise Concerns
An analysis of fuel prices across major Nigerian cities reveals significant variations.
While Maiduguri recorded the highest price at N1,413 per litre, other cities also experienced elevated rates. Sokoto followed closely with N1,400, while Kano and Enugu recorded around N1,390 per litre. Abuja stood at approximately N1,385, while Lagos maintained relatively lower prices at about N1,318 per litre.
Average prices also reflected this disparity, with Lagos recording the lowest average and Maiduguri the highest.
This uneven pricing structure underscores ongoing inefficiencies in the distribution network and raises concerns about energy accessibility in remote regions.
Domestic Refining Sees Major Breakthrough
Despite rising pump prices, Nigeria’s domestic refining sector showed strong performance in April, signaling gradual progress toward energy self-sufficiency.
Local refining output increased significantly, driven primarily by large-scale private sector investment. Daily petrol production exceeded 50 million litres, with a substantial portion supplied to the domestic market.
In addition to petrol, production of diesel and aviation fuel also rose, strengthening supply across multiple segments of the energy market.
This growth in refining capacity has led to a noticeable reduction in fuel imports, which dropped compared to previous months. The shift indicates that Nigeria is gradually reducing its reliance on imported petroleum products.
Fuel Supply Improves but Falls Short of Demand
While supply improved, it still lagged behind national consumption levels.
Daily petrol supply averaged over 44 million litres, but consumption rose above 51 million litres per day. This gap between supply and demand continues to exert pressure on prices and availability.
Fuel sufficiency levels also declined during the month, indicating tighter supply conditions. Petrol reserves dropped compared to the previous month, while diesel and aviation fuel maintained relatively stronger stock levels.
The imbalance highlights the need for further expansion in refining capacity and improved supply chain efficiency.
State Refineries Remain Inactive
One of the major concerns in Nigeria’s energy sector remains the continued inactivity of state-owned refineries.
Facilities in Port Harcourt, Warri, and Kaduna remained shut throughout April, contributing nothing to domestic fuel production. This places additional pressure on private refineries and import channels to meet national demand.
The delay in rehabilitating these refineries continues to limit Nigeria’s full refining potential and slows progress toward complete energy independence.
Modular Refineries Contribute Modestly
Smaller modular refineries also played a role in domestic production, although their contribution remains relatively limited.
These facilities produced modest volumes of diesel, helping to supplement supply in the domestic market. However, their current output levels are not sufficient to significantly impact overall fuel pricing or availability.
Expanding modular refining capacity could provide additional support, particularly in underserved regions.
Gas Production Signals Positive Growth
Nigeria’s gas sector recorded notable improvements during the same period, reflecting broader progress in the energy industry.
Daily gas supply increased, with significant volumes allocated to both export and domestic consumption. This growth supports power generation, industrial activities, and commercial usage across the country.
Cooking gas supply also remained relatively stable, although consumption slightly exceeded supply, leading to price fluctuations in some areas.
Ongoing investments in gas infrastructure, including pipeline projects nearing completion, are expected to further enhance supply and utilization in the coming months.
Westbridge Perspective: Structural Reforms Still Needed
From an industry standpoint, the current situation reflects a transitional phase in Nigeria’s energy sector.
While increased domestic refining marks a major milestone, it has not yet translated into lower fuel prices for consumers. Structural issues such as foreign exchange volatility, logistics inefficiencies, and inactive public refineries continue to offset gains made in local production.
For meaningful price relief to occur, Nigeria must address these underlying challenges. Strengthening distribution networks, stabilizing the currency, and accelerating refinery rehabilitation will be critical steps.
In addition, policies that encourage competition and efficiency within the downstream sector could help create a more balanced and sustainable pricing environment.
Outlook for Petrol Prices in Nigeria
Looking ahead, petrol prices in Nigeria are likely to remain sensitive to both global and domestic factors.
International oil prices, geopolitical developments, and exchange rate movements will continue to influence costs. At the same time, improvements in local refining capacity and infrastructure could gradually ease supply constraints.
If current trends in domestic production are sustained and complemented by effective policy reforms, Nigeria may begin to see more stability in fuel prices over time.
However, in the short term, consumers should expect continued volatility, especially in regions with high transportation and distribution costs.