Dangote Confirms Subsidies on Petrol and Diesel Prices

A senior official from the Dangote Group revealed that petrol and diesel in Nigeria are subsidized, with the ex-depot price for petrol currently at N1,200 per liter, which is below competitive market prices. This pricing comes amid rising crude oil prices, which have surged due to geopolitical tensions, including the US-Iran conflict.

As of February 28, Brent crude prices exceeded $100 per barrel, prompting Dangote to raise petrol prices to N774 per liter. The aviation sector is particularly affected, with jet fuel prices soaring by 350%, leading to concerns from airlines, including a warning from Allen Onyema, Vice President of Airlines Operating in Nigeria, about potential shutdowns.

The current market price for jet fuel has reached N3,300 per liter, significantly higher than previous prices. Dangote's refinery, a $20 billion project, is positioned to optimize fuel prices, but the official noted that aviation fuel cannot be subsidized, leading to market price sales.