Dangote Assures Fuel Price Stability Despite Rising Global Oil Prices
Amid rising global crude oil prices and fluctuating energy markets, the Dangote Petroleum Refinery & Petrochemicals has assured Nigerians of stable and affordable fuel prices, thanks to ongoing strategic partnerships with the federal government and a robust domestic supply plan.
The announcement came on Monday through Anthony Chiejina, Group Chief Branding and Communications Officer of the Dangote Group, who reaffirmed the company’s commitment to cushioning the impact of global oil price volatility on Nigerian consumers.
“We are immensely grateful to His Excellency, President Bola Ahmed Tinubu, for enabling this through the commendable Naira-for-Crude Initiative
. “This forward-thinking policy has empowered us to stabilize and even reduce the price of petroleum products, ensuring affordability for Nigerians,” Chiejina said.
The Dangote Refinery, located in Lagos, has recently reduced the ex-depot price of Premium Motor Spirit (PMS)—commonly known as petrol—to ₦835 per litre, marking the second price drop within a single week.
This reduction is significant given the global trend of rising crude oil prices.
The refinery said it would continue supplying major oil marketers and retail partners, including MRS Oil, Ardova, Heyden, Optima Energy, Hyde, and Techno Oil, with competitively priced products. The price cuts are expected to ease the cost burden on consumers and improve availability at retail outlets across the country.
The Naira-for-Crude policy, introduced by the Tinubu administration, allows local refineries to purchase crude oil in naira rather than dollars.
This eliminates the heavy foreign exchange burden that has traditionally inflated domestic fuel prices and ensures more predictable pricing models.
Industry analysts have praised the policy as a game-changer in Nigeria’s energy landscape, encouraging local refining and reducing dependence on fuel imports.
To ensure a consistent supply of refined petroleum products, the Dangote Refinery recently took delivery of 146,000 metric tonnes of crude oil from the international market. Additional shipments are scheduled in the coming weeks as the refinery ramps up operations toward full-scale production.
The increased throughput is expected to boost domestic availability of petrol, diesel (AGO), and liquefied petroleum gas (LPG), reducing Nigeria’s reliance on imports and enhancing fuel security.
Despite Dangote’s reduction efforts, some reports from independent marketers indicate that depot prices for petrol have risen slightly—from ₦827 to ₦837 per litre. In contrast, prices for diesel and LPG have experienced marginal drops. These movements suggest a complex interplay of logistics, regional demand, and supply chain costs.
However, Dangote officials maintain that the long-term trend will lean toward price moderation and supply stability as the refinery scales up and the market adjusts to a more locally-driven fuel ecosystem.
The 650,000 barrels-per-day Dangote Refinery, the largest in Africa, is central to Nigeria’s drive toward energy independence and economic diversification. With full operations expected to begin soon, the refinery aims to meet most of Nigeria’s domestic fuel needs while exporting surplus products to neighboring countries.
“Dangote Refinery remains committed to national development and economic transformation. Our goal is not just to refine fuel but to redefine the future of energy in Nigeria,” Chiejina concluded.
