Iran Conflict Boosts Petrol Demand for Dangote Refinery

The conflict involving Iran has triggered an unprecedented surge in petrol demand for Dangote Refinery, located on the outskirts of Lagos, Nigeria. Prices increased from N1.175 to N1.245 per liter at ex-depot gantry and from N1.512 to N1.606 per metric ton at coastal prices.

This price adjustment is attributed to rising global geopolitical tensions and crude oil costs, effective from midnight on March 21, 2026. Aliko Dangote, President of Dangote Group, described the situation as "crazy," noting that crude oil prices have spiked nearly to $120 per barrel.

He emphasized the refinery's strategic importance for Africa's economic independence and the necessity for homegrown investments in critical infrastructure. The refinery has a processing capacity of 650,000 barrels per day and aims to reduce Nigeria's reliance on imported petroleum products, thereby easing pressure on foreign exchange reserves.

Dangote also plans to expand refinery capacity and operations across 16 African countries, highlighting the urgency for African-led investments in large-scale industrial projects.