Dangote Refinery Price Stability Met by Calls for State Refineries

The Dangote Petroleum Refinery & Petrochemicals is insulating the Nigerian domestic market from global price shocks by maintaining stable fuel prices despite rising international gasoline costs and freight rates. According to S&P Global Commodity Insights, the 700,000-barrel-per-day facility has effectively capped domestic costs, making imports from regional hubs like Lomé uneconomic. Since late May, the refinery reduced ex-depot prices for Premium Motor Spirit by more than N200 per litre, Automotive Gas Oil by N300 per litre, and Jet A1 aviation fuel by N520 per litre, using monthly average crude procurement costs rather than daily Brent fluctuations.

Despite this stability, the Petroleum Products Retailers Outlets Owners Association of Nigeria (PETROAN) has urged the Nigerian National Petroleum Company Limited to revive the Port Harcourt, Warri, and Kaduna refineries. PETROAN reports that the Dangote refinery's shift to selling refined products in U.S. dollars has pushed depot owners to increase ex-depot petrol prices from approximately N1,080 to as high as N1,245 per litre.

PETROAN National President Billy Gillis-Harry argues that government-owned refineries are essential for currency stability and energy security. He noted that because marketers earn in naira, reliance on dollar-denominated sourcing leaves pump prices vulnerable to exchange rate fluctuations and foreign exchange scarcity.