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Dangote Prioritizes Nigerian Fuel Supply as Global Shock Drives Prices Higher

The refinery raised ex-depot petrol prices by about N100, with the company absorbing roughly 20% of rising input costs.

Overview

  • Retail pump prices in Nigeria have surged from roughly 760 naira per litre to as high as 1,300 naira, reflecting tighter global markets and higher freight.
  • Dangote reports receiving about five crude cargoes per month from NNPC versus the 13 required to meet domestic demand.
  • Shortfalls have forced additional crude purchases from international traders at premiums, paid for with foreign exchange at open-market rates.
  • The company cites landed crude costs of about $88–$91 per barrel, with Nigerian grades priced $3–$6 over Brent and freight around $3.50 per barrel.
  • Regulator data show Dangote recently supplied 40.1 million litres of gasoline to the local market against daily demand of about 60 million litres, underscoring ongoing supply strain.