Dangote Refinery Addresses Rising Petrol Prices in Nigeria

The management of Dangote Refinery addressed the recent increase in petrol prices across Nigeria, which currently averages N1,300 per liter, following a nearly 20% rise. This price surge contrasts with a recent drop in global crude oil prices, highlighting the complexities of the local market.

The Managing Director emphasized that the refinery operates fully within global market dynamics without subsidy support, facing multiple cost pressures. The situation is compounded by ongoing geopolitical tensions and challenges in crude oil supply chains.

The management urged the federal government to adopt a broader strategy to alleviate cost pressures in the sector. Additionally, concerns were raised regarding the crude oil allocation framework in Nigeria, as local refineries often struggle to access preferred crude grades, forcing them to source crude from the international market at higher costs.

The MD noted that 30-35% of the refinery's crude needs are met through naira arrangements, even without price advantages.