A senior management official of the Dangote Group has disclosed that the Dangote Petroleum Refinery has been partially subsidising petrol and diesel supplied to the Nigerian market. This move comes as global crude oil prices continue to rise due to escalating geopolitical tensions, which are directly affecting domestic fuel stability in Nigeria.
According to the official, the refinery’s N1,200 per litre ex-depot petrol price still sits below real market pressure. He explained that Brent crude jumped from about $66 to over $100 per barrel following disruptions linked to the US-Iran conflict and tensions around the Strait of Hormuz. As a result, Dangote adjusted its gantry price from N774 to N1,200 while attempting to stabilise local fuel supply through price optimisation rather than full subsidy support.
Meanwhile, the aviation sector is facing even harsher pressure. Consequently, Jet A-1 fuel prices have surged significantly across the country. Airline operators report increases from about N900 per litre to as high as N2,900 or even N3,300 in some cases, putting severe strain on flight operations. Dangote Refinery, which supplies a large share of Nigeria’s aviation fuel, stated that it sells jet fuel below N2,000 per litre on average. However, market volatility and global crude dynamics continue to push costs higher for airlines and marketers.
Overall, the Dangote Refinery says it is balancing pricing pressures while supporting local fuel stability. However, continued global oil volatility and domestic demand challenges may further strain Nigeria’s aviation and downstream petroleum sectors if market conditions do not improve soon.
