Dangote Refinery Reacts To Latest Petrol Price Hike

The management of Dangote Refinery has explained that the recent petrol price increases across Nigeria are largely driven by global market pressures and challenges in crude oil supply.

Despite the commencement of domestic refining, the refinery noted that expectations of significant relief at the pumps have been tempered by external factors, including geopolitical tensions in the Middle East.

Speaking in an interview on Arise Television, the Managing Director, David Bird, emphasized that the refinery operates fully within global market dynamics without subsidy support. “On fuel pricing, the refinery is fully exposed to global market forces and operates without subsidies, making it vulnerable to fluctuations driven by geopolitical tensions,” he said.

Bird highlighted that multiple cost factors—including crude oil, freight, and insurance—continue to exert pressure on petrol prices. “We try and maintain some stability within a commercially acceptable range, but all our cost inputs are impacted,” he stated.

A recent market survey conducted on Wednesday, March 25, 2026, revealed that the recent drop in global crude prices has yet to translate into lower retail petrol prices in Nigeria. Petrol currently sells at an average of about N1,300 per litre nationwide, following a nearly 20 per cent increase implemented by marketers.

Acknowledging the hardship faced by Nigerians, Bird described the situation as part of a broader economic challenge. “This is a cost-of-living crisis; every facet of the modern economy is impacted by energy,” he said. He also warned that even if global conflicts were resolved immediately, supply chain disruptions would persist for months.

The refinery chief urged the Federal Government to adopt a comprehensive approach to addressing cost pressures in the sector. “Government and industry must think strategically to cushion future shocks,” he added, referencing vulnerabilities highlighted during the COVID-19 pandemic.

Bird also raised concerns over Nigeria’s crude oil allocation framework, noting that the refinery often receives insufficient supply and is unable to access preferred crude grades. This shortfall compels the refinery to purchase Nigerian crude from the international market at a premium. “We are currently paying over $18 per barrel extra for the same Nigerian crude grades,” he revealed. Only about 30 to 35 per cent of the refinery’s crude requirements are met under the Crude-for-Naira arrangement, with no discount or subsidy, and international freight and insurance costs further add to the pricing pressures.