Fuel prices in oil-producing Nigeria have reached record-high levels, industry figures show, as maximum output from the giant Dangote Petroleum Refinery has failed to shield the country from the energy market impact of war in the Middle East, reports Reuters.

The 650,000 barrels-per-day refinery, Africa’s largest, became fully operational early this year. It was designed to transform Nigeria into a major exporter of refined products after decades of inadequate refinery capacity. In the past, that repeatedly led to fuel shortages but government subsidies kept pump prices low.

President Bola Tinubu removed this buffer when he took office in 2023, promising reforms that earned plaudits from international investors.

Now Nigerians face the shock of a 65 per cent price spike — the largest among major African economies as the impact of the new refinery has been blunted by the need to import large volumes of expensive crude from abroad, even though Nigeria is Africa’s biggest oil producer.