National News – A senior official at Dangote Group has disclosed that its refinery is effectively cushioning Nigerians by selling petrol and diesel below prevailing market rates, even as global crude prices surge following tensions linked to the US-Iran conflict.
The revelation, made in Lagos on Monday, sheds new light on how Africa’s largest refinery is navigating pricing pressures in a volatile energy market.
According to the insider, the refinery’s N1,200 per litre ex-depot petrol price falls short of what a fully competitive market would demand, especially after crude oil prices jumped from $66 to over $100 per barrel when supply routes like the Strait of Hormuz were disrupted.
While the company described its approach as “optimisation,” it acknowledged that this effectively translates to absorbing part of the cost burden.
The situation differs sharply in aviation fuel. The refinery, which supplies most of Nigeria’s Jet A-1 demand, has opted to sell at market rates due to financial constraints.
This has contributed to a dramatic spike in prices—from about N900 per litre in February to as high as N3,500 in some cases—placing airlines under severe strain.
Industry operators warn that continued increases could force service suspensions, raising fears of broader economic disruption.
Reactions across Nigeria have been mixed. Some commuters and transport operators view the refinery’s pricing as a temporary relief in a harsh economy, while analysts argue it raises sustainability concerns.
“Private subsidy is not a long-term solution,” a Lagos-based energy consultant noted, warning that market distortions could emerge if pricing realities are delayed.
The Major Energies Marketers Association of Nigeria has attributed rising fuel costs to global factors but distanced itself from the highest reported aviation fuel prices, urging airlines to seek competitive suppliers.
What emerges is a complex picture: a private refinery stepping into a quasi-stabilisation role traditionally held by government, global geopolitics dictating local pump prices, and an aviation sector nearing a tipping point. How long such a balancing act can continue remains uncertain.
