Dangote Refinery Subsidising Petrol, Diesel Amid Rising Crude Prices — Official

A senior official of the Dangote Group has disclosed that the Dangote Petroleum Refinery is effectively subsidising the price of petrol and diesel supplied to the Nigerian market amid soaring global crude oil prices.

The official, who spoke on condition of anonymity, said the refinery’s ex-depot price of N1,200 per litre for petrol is below prevailing market rates, especially following the spike in crude prices triggered by tensions linked to the US-Iran war.

Global oil prices surged after disruptions in the Strait of Hormuz, with Brent crude rising from $66 per barrel in late February to over $100 per barrel.

Despite the increase, the source said the $20bn refinery has continued efforts to cushion the impact on Nigerians by “optimising” prices of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel).

“With crude prices rising sharply, we try to optimise PMS prices as much as possible to support the public. We also try to moderate diesel prices, but we cannot subsidise everything,” the official said.

He confirmed that the term “optimise” in this context effectively means subsidising prices.

However, the refinery has not extended the same pricing approach to aviation fuel, noting that Jet A-1 is being sold strictly at market rates due to cost pressures.

Another company source revealed that aviation fuel is currently sold to marketers at about N1,799 per litre—significantly lower than prices reportedly charged to airlines.

The development comes amid a crisis in the aviation sector, with the Airline Operators of Nigeria warning of a potential shutdown over escalating fuel costs.

AON Vice President Allen Onyema recently said Jet A-1 prices have jumped from about N900 per litre earlier in the year to between N2,700 and N3,500, depending on the supplier.

Industry data from the Major Energies Marketers Association of Nigeria shows Dangote’s aviation fuel gantry price at around N1,732 per litre, compared to N1,835 for imported alternatives.

In a letter to MEMAN, AON President Abdulmunaf Sarina described the over 300 per cent rise in jet fuel prices as “unsustainable,” warning that airlines can no longer continue operations under such conditions.

While marketers attributed the surge to global market disruptions and geopolitical tensions, they also questioned claims of prices as high as N3,300 per litre, stating that such figures exceed their internal market averages.

As fuel costs remain volatile, uncertainty continues to loom over Nigeria’s energy and aviation sectors, with stakeholders calling for urgent interventions to stabilise pricing and prevent further disruptions.