Dangote Addresses High Petrol Prices and Refinery Challenges

Aliko Dangote, President of Dangote Group, addressed the ongoing high petrol prices in Nigeria during an interview with Arise TV. He attributed these prices to several factors, including the costs of crude oil, market disruptions, smuggling, and Nigeria's overall operating environment.

Dangote noted that his refinery purchases crude at market prices, sometimes paying premiums, which limits the ability to reduce refined product prices. He highlighted that local refining does not fully insulate against international crude oil price fluctuations, revealing that his refinery bought crude for as much as $124 per barrel in May.

Dangote also pointed out that petrol prices should be viewed in the context of regional markets, as fuel is significantly more expensive in neighboring countries, which fuels smuggling. He expressed commitment to supplying the domestic market and preventing shortages.

Additionally, Dangote raised concerns about Nigeria's industrial environment, citing high borrowing costs and inconsistent government policies as barriers to attracting further refinery investments.