By Vincent Egunyanga, Abuja
The Dangote Refinery has blamed the rising cost of petrol in Nigeria on multiple regulatory charges imposed by about 47 government agencies, saying the levies significantly increase the final pump price of fuel.
The refinery’s Managing Director, David Bird, disclosed this on Tuesday during a press conference in Lagos, explaining that the cumulative costs from the various agencies ultimately contribute to petrol selling for about ₦1,200 per litre.
Bird, however, did not disclose the names of the agencies involved.
He also criticised the Federal Government of Nigeria’s approach to crude oil allocation, lamenting that the refinery is often treated as a “customer of last resort.”
According to him, Nigeria’s premium crude grades are frequently sold to international buyers, leaving the refinery to source crude from intermediaries at higher prices.
“We put forward every month a whole raft of grades; we love Bonny Light, we love Escravos. The priority, I feel, is that the domestic refining industry should be seen as customers of first preference rather than customers of last resort,” Bird said.
He warned that unless domestic refiners are prioritised in crude supply, Nigeria may continue to struggle with high fuel prices despite its vast oil resources.
The refinery also expressed concern that crude allocated to international traders sometimes re-enters the market at inflated prices, further increasing local refining’s operational costs.
Bird urged regulatory agencies to review their charges and called on the government to prioritise domestic refining, especially amid global market uncertainties.
He noted that geopolitical tensions around the Strait of Hormuz and the escalation of Iran–U.S. tensions have also contributed to global price volatility, adding that petrol prices have risen by more than ₦350 in recent months.
*Dangote lowers petrol to N1,075, diesel to N1,430
The management of Dangote Petroleum Refinery has announced a significant reduction in the prices of Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (AGO), also called diesel, in a move aimed at easing pressure on consumers and supporting economic stability in Nigeria.
Under the new pricing structure, the gantry price of petrol has been reduced from ₦1,175 to ₦1,075 per litre, a decrease of ₦100.
Similarly, the coastal price of PMS has dropped from ₦1,150 to ₦1,028 per litre, a reduction of ₦122.
Diesel prices were also cut from ₦1,620 to ₦1,430 per litre, amounting to a ₦190 decrease.
The refinery said the price adjustment reflects its commitment to a transparent pricing system aligned with prevailing global market realities.
“This strategic adjustment underscores our commitment to maintaining a pricing structure that remains sensitive to global market trends and reflective of our principles of fairness and transparency,” the company stated.
According to the refinery, all crude processed at the facility is purchased at the global benchmark price plus a $3-$6 premium.
At the same time, foreign exchange transactions are conducted at the prevailing market rate, with no subsidies applied to either crude oil purchases or foreign exchange.
It added that crude supplied under the Naira-for-Crude arrangement is also priced in line with the international benchmark plus a premium. It converted to naira at the prevailing exchange rate.
The refinery noted that it has consistently adjusted prices to reflect changing market conditions.
“In 2025 alone, we reduced our gantry prices on no fewer than eight occasions, increasing them only twice—an effort rooted in economic patriotism and our responsibility to the Nigerian people,” the company said.
It reiterated its commitment to ensuring that any cost advantages are passed on to consumers across the 36 states and the Federal Capital Territory.
Meanwhile, the Managing Director of Dangote Petroleum Refinery, David Bird, assured Nigerians that the facility remains capable of meeting domestic fuel demand despite turbulence in the global oil market.
Bird explained that while many fuel-import-dependent countries are currently experiencing panic buying and rationing, Nigeria would avoid such disruptions because of its domestic refining capacity.
He noted that the facility has continued to supply fuel to the local market even as geopolitical tensions in the Middle East drive up crude prices, freight charges, and insurance costs.
According to him, crude oil prices surged from the mid-$60s to nearly $120 per barrel within a week, causing significant disruptions across the global energy supply chain.
While acknowledging that the refinery is not insulated from global price volatility, Bird said domestic refining now gives Nigeria a critical supply advantage.
“What would be worse than $120 oil is no oil,” he said, noting that several countries have begun rationing fuel due to heavy reliance on imports.
Bird added that even countries with strong refining capacity have started restricting fuel exports to safeguard domestic supply amid the ongoing global energy shock.
He stressed that as long as the refinery continues to receive crude supply from the Federal Government and the Nigerian National Petroleum Company Limited (NNPCL), it will remain committed to meeting Nigeria’s fuel needs.
“With the continued support of the government and uninterrupted access to local crude supply, Dangote Refinery will consistently meet all of Nigeria’s refined fuel requirements,” he assured.
