“Petrol price may remain high” —Dangote reveals

Nigeria’s petrol prices are likely to remain high despite local refining, as global pressures continue to shape the market, officials at the Dangote Refinery have said.

Speaking during an interview on Arise Television, the refinery’s Managing Director, David Bird, explained that the expected relief from domestic production has been weakened by international factors, especially tensions in the Middle East.

He said the refinery operates without subsidies and is fully exposed to global market realities, making fuel pricing sensitive to rising costs across the supply chain.

Global pressures keeping prices elevated

Bird noted that key inputs such as crude oil, freight, and insurance are all influenced by global conditions. According to him, this makes it difficult to significantly reduce petrol prices at the pump.

“We try and maintain some stability within a commercially acceptable range, but all our cost inputs—from crude to freight and insurance—are impacted,” he said.

A market survey showed that although crude oil prices dropped earlier in the week, petrol prices have not followed the same trend. Instead, the recent increase remains in place.

Across the country, petrol continues to sell at an average of about ₦1,300 per litre after a nearly 20 per cent hike recorded last week.

‘Cost-of-living crisis’ deepens concerns

Bird described the situation as part of a wider economic challenge affecting Nigerians.

“This is a cost-of-living crisis; every facet of the modern economy is impacted by energy,” he said.

He added that even if geopolitical tensions ease immediately, the effects on supply chains could linger for months, delaying any potential price relief.

Call for policy rethink and long-term planning

Looking ahead, the refinery boss urged the government to take a broader view of the factors driving fuel costs, including the overall business environment.

“I think there’s an opportunity for the government to take an all-encompassing view, not just crude price, but the cost of doing business in Nigeria,” he stated.

He also stressed the need for long-term strategies, such as building strategic reserves, noting that past global disruptions like COVID-19 exposed vulnerabilities in supply systems.

Concerns over crude supply allocation

Bird also raised concerns about the crude allocation system in Nigeria, saying the refinery does not receive enough supply or its preferred grades.

He explained that while part of the refinery’s needs is met under the Crude-for-Naira arrangement, the company still relies heavily on imports.

“So, our request is, can we get more and can we be transparent on the allocation methodology?” he asked.

According to him, the refinery often ends up buying Nigerian crude from the international market in dollars, sometimes at a premium of over $18 per barrel.

He added that rising freight and insurance costs have further increased the overall expense of production, contributing to the sustained high petrol prices across the country.