The Dangote Petroleum Refinery says it is targeting fuel prices stability in Nigeria despite ongoing volatility in global crude oil markets, positioning domestic refining as a buffer against external price shocks.
This was disclosed by the Managing Director and Chief Executive Officer of Dangote Refinery, David Bird, during his formal unveiling in Lagos on Wednesday attended by Nairametrics.
The remarks come as Nigeria continues to adjust to a liberalised fuel market heavily influenced by international crude oil benchmarks.
Bird said the refinery’s pricing supports Nigeria’s goal of swift downstream price stability.
What Bird is saying
Bird said the refinery’s overarching goal is not to eliminate price movements entirely, but to prevent extreme and unpredictable swings that often characterise import-dependent markets.
“From price stability, that is definitely the President’s objective as soon as possible,” Bird said. “In Australia, the price at petroleum stations can change three times a day. It’s extremely volatile, and that is not justified.”
He noted that while crude oil remains the primary driver of fuel price volatility, Dangote Refinery is focused on keeping price changes within a predictable and manageable range.
“Our objective is to drive price stability within a range,” he said. “Crude oil is the primary driver of price volatility, but we are in a processing business. You will see some volatility in diesel and gasoline prices, so we need to monitor that within a range.”
How domestic refining moderates price shocks
According to Bird, the refinery’s pricing strategy is anchored on international benchmarks but adapted to reflect domestic production realities.
This, he said, allows the company to moderate price shocks and prevent sudden spikes that could place pressure on consumers and businesses.
“So, our objective is to draw stability and it has to be in the range of the international benchmarks,” he added.
He pointed to recent market developments as evidence of the refinery’s stabilising role, noting that despite significant fluctuations in global crude oil prices, Nigeria experienced relative price calm, particularly during the festive season.
“Look at the wild ride oil prices have had in the meantime. Yet, we have sustained price stability here, particularly during the festive season, all with our own production,” Bird said.
Bird further explained that countries heavily reliant on fuel imports are more exposed to international price volatility, foreign exchange pressures, and supply disruptions.
“If you are fully import-dependent, then you are fully exposed to the fluctuations in the international market,” he said, adding that domestic refining capacity helps insulate Nigeria from these risks.
Why this matter
Fuel price volatility has significant implications for inflation, transportation costs, and overall economic stability in Nigeria.
With petrol and diesel prices directly affecting households and businesses, extreme price swings can quickly erode purchasing power and increase operating costs.
The Dangote Refinery’s scale and integrated operations reduce Nigeria’s reliance on fuel imports, ease pressure on foreign exchange demand, and enhance energy security. While fuel prices may still respond to global crude oil movements, local refining is expected to dampen extreme volatility and provide consumers with greater price predictability over time.
What you should know
Nigeria fully liberalised its petrol market in 2023, making domestic fuel prices more sensitive to global crude oil prices and exchange rate movements.
The Dangote Refinery, with a capacity of 650,000 barrels per day, is expected to significantly reduce fuel imports and reshape Nigeria’s downstream petroleum sector.
Nairametrics had reported that David Bird was originally appointed as MD/CEO of Dangote Refinery in August 2025.
In October 2025, the Dangote Refinery announced plans to expand its production capacity from 650,000 barrels per day to 1.4 million barrels per day.
In November, Dangote Industries signed a major agreement with Honeywell to provide advanced refinery services and technology that will enable the expansion of its refining capacity.
