KEY POINTS
- Dangote Refinery says it absorbed about 20 percent of the recent surge in crude oil costs to limit the impact on petrol prices.
- The company adjusted its ex-depot petrol price by N100 per litre following global oil market disruptions linked to tensions in the Middle East.
- The refinery pledged to prioritise Nigeria’s domestic fuel supply and improve nationwide distribution through new logistics initiatives.
Dangote Petroleum Refinery and Petrochemicals has reassured Nigerians that it will continue to maintain a steady supply of petrol despite recent disruptions in the global oil market.
The refinery gave the assurance after petrol marketers across the country raised pump prices following escalating military tensions involving the United States, Iran and Israel, which have shaken global energy markets.
In a statement issued on Thursday, March 5, 2026, the company said the international conflict has triggered a rise in crude oil prices and disrupted refining operations in several parts of the world. According to the refinery, some refineries have reduced output or shut down entirely, tightening global supplies of petroleum products.
The situation has been further compounded by China’s decision to ban the export of gasoline and diesel, which has added pressure to already strained global fuel supplies.
Dangote Refinery said it is working to shield Nigeria from these global shocks by prioritising the domestic market and ensuring that locally refined products remain available to Nigerian consumers.
The company noted that global crude prices have surged significantly in recent weeks, with Brent crude rising by about 26 percent to more than $84 per barrel within a short period.
Measured petrol price adjustment
In response to the rising cost of crude oil and logistics, the refinery said it introduced a modest adjustment of N100 per litre in its ex-depot price of Premium Motor Spirit, commonly known as petrol.
The company explained that the increase represents roughly a 12 percent price adjustment, adding that it deliberately absorbed about 20 percent of the additional crude oil costs to soften the impact on the domestic market.
According to the refinery, maintaining petrol prices below production costs for an extended period would threaten its ability to continue sourcing crude oil, sustain refinery operations, and guarantee consistent fuel supply in Nigeria’s deregulated petroleum market.
Dangote Refinery also provided insight into the cost pressures it currently faces. The company said Nigerian crude oil is now selling at a premium of between $3 and $6 above the Brent benchmark.
When freight costs of about $3.50 per barrel are added, the refinery said crude oil effectively arrives at its facility at prices ranging between $88 and $91 per barrel. This represents a sharp increase from earlier levels of about $68 per barrel when the refinery’s ex-depot petrol price stood at N774 per litre.
The refinery also raised concerns about the limited supply of crude oil it receives from domestic producers.
According to the company, it currently receives about five crude cargoes each month from the Nigerian National Petroleum Company, which are paid for in naira. However, the refinery said it requires approximately 13 cargoes monthly to fully support its domestic fuel sales and production needs.
Due to the shortfall, Dangote Refinery said it often has to purchase crude oil from international traders using foreign exchange at prevailing global market rates.
The company noted that this arrangement significantly increases operational costs and adds pressure to its production and supply chain.
