Dangote Addresses Rising Petrol Prices Amid Local Refining

Aliko Dangote, President of Dangote Group, addressed concerns regarding rising petrol prices in Nigeria, stating that prices will not fall sharply due to the influence of crude oil costs and international market developments. In an interview with Arise TV, he explained that his refinery purchases crude oil at prevailing market prices, sometimes paying significant premiums, which complicates the ability to sell petrol below sustainable market levels.

He noted that petrol prices in Nigeria are still lower than in neighboring countries, where prices are 30% to 50% higher, leading to smuggling issues. Dangote revealed that in May, his refinery purchased crude oil for as much as $124 per barrel and stated, “We can’t go now and subsidize everything.” He assured that the refinery would meet local demand despite challenges and highlighted high borrowing costs and inconsistent government policies as major obstacles to industrialization in Nigeria.

He urged the government to protect local industries to foster job creation and economic growth.