Dangote Petroleum Refinery & Petrochemicals has reassured Nigerians of its commitment to maintaining stable petrol supply despite recent shocks in the international oil market.
The assurance comes days after marketers increased pump prices of petrol following the military conflict involving the United States, Iran and Israel.
The refinery stated that despite the measured N100 increase in petrol price, it still absorbed 20% of the cost of crude oil surge to cushion the impact in domestic market.
The refinery made this known in a statement issued on Thursday, March 5, 2026, and seen by Nairametrics, noting that disruptions in global refining operations have intensified pressure on petroleum product supply worldwide.
What they are saying
The refinery explained that the ongoing conflict in the Middle East has led to the shutdown of some refineries and reduced production levels globally, contributing to scarcity of petroleum products. It added that the situation has been worsened by China’s ban on the export of gasoline and diesel.
- “The Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the many benefits of domestic refining.”
- “The conflict has driven global crude and freight prices sharply higher, with benchmark Brent prices rising by about 26% within a short period to above $84.0 per barrel.”
- “In response, the refinery implemented a measured adjustment of N100 per litre in its ex-depot price of Premium Motor Spirit, representing an increase of about 12%. The refinery has absorbed 20% of the cost escalation, for now, to cushion the domestic market.”
The refinery said the adjustment was necessary to reflect global market realities while ensuring continued production and supply of petrol to Nigerian consumers.
More Insights
Dangote Refinery also provided further context on the rising cost of crude oil and supply constraints affecting its operations.
- The refinery noted that Nigerian crude oil currently trades between $3 and $6 per barrel above the Brent benchmark, and when freight costs of about $3.50 per barrel are added, the crude lands in its tanks at between $88 and $91 per barrel.
- It added that crude previously landed at about $68 per barrel when the refinery’s ex-depot petrol price stood at N774 per litre.
- According to the company, it receives only about five crude cargoes monthly from the Nigerian National Petroleum Company (NNPC), paid for in naira, which is significantly below the 13 cargoes required monthly to support its domestic sales.
The refinery also stated that it is often forced to procure crude from international traders using foreign exchange at open market rates due to inadequate supply from domestic producers as required under the Petroleum Industry Act (PIA).
The company maintained that selling petrol below cost would undermine its ability to procure crude, sustain production, and guarantee uninterrupted supply to Nigerians in a deregulated market environment.
Dangote Refinery cushioning the impact
The refinery said it is accelerating initiatives aimed at reducing logistics costs and improving nationwide fuel distribution despite global market pressures.
- The company said it is fast-tracking the deployment of Compressed Natural Gas (CNG)-powered trucks to enhance nationwide distribution efficiency.
- The initiative is expected to reduce logistics costs and improve delivery timelines across the downstream petroleum sector.
According to the refinery, the rollout of the CNG-powered trucks is scheduled to commence this month.
Dangote Refinery added that large-scale domestic refining will continue to reduce Nigeria’s exposure to international supply disruptions, moderate foreign exchange demand and protect the country from severe fuel shortages during periods of global instability.
What you should know
The Chairman of Dangote Group, Aliko Dangote, recently disclosed that the refinery has reached an offtake agreement with 12 major and independent oil marketers across Nigeria.
- The agreement will see the marketers distribute between 60 million and 65 million litres of petrol daily nationwide.
- The move is expected to stabilise petrol supply across the country and deepen Nigeria’s fuel self-sufficiency.
- It also provides a structured framework for nationwide fuel distribution from the refinery.
Dangote noted that the structured offtake agreement would help guarantee nationwide availability of petrol while allowing the refinery to export surplus volumes to international markets.
