The management of Dangote Refinery has attributed the recent surge in petrol prices across Nigeria to global market forces and challenges in crude oil supply, despite the country’s growing domestic refining capacity.
Speaking to Arise Television, Managing Director David Bird said the refinery operates fully within international market dynamics, without any 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,” Bird explained.
He added that multiple cost factors—from crude acquisition to freight and insurance—continue to put upward pressure on pump prices. “We try to maintain stability within a commercially acceptable range, but all our cost inputs are impacted,” he said.
Pump Prices Remain Elevated
A market survey by Vanguard on March 25, 2026, revealed that recent declines in global crude prices have yet to translate into lower retail petrol prices in Nigeria. Petrol currently sells at an average of N1,300 per litre nationwide, following a nearly 20% increase by marketers last week.
Acknowledging the economic strain on Nigerians, Bird described the situation as part of a wider cost-of-living challenge. “Every facet of the modern economy is impacted by energy,” he noted, warning that supply chain disruptions could persist even if global tensions ease.
Crude Supply Challenges
Bird also raised concerns over Nigeria’s crude allocation system, revealing that the refinery is often under-supplied and unable to access its preferred crude grades. This shortfall forces the refinery to source some Nigerian crude from the international market at a premium.
“As of now, we’re paying over $18 a barrel premium for the same Nigerian crude grades,” he disclosed, noting that only 30–35% of the refinery’s crude needs are met under the Crude-for-Naira arrangement, and even then without any price advantage.
Bird urged the Federal Government to adopt a broader approach in tackling cost pressures in the sector, emphasizing the need for strategic planning to mitigate future shocks.
“Government and industry must think the unthinkable; COVID should have shown us the vulnerability of global supply chains,” he said.
READ ALSO:
- Federal Government College Kaduna Class of 1986 Celebrates 40 Years of Friendship at Memorable Reunion
- WAEC Releases 2026 WASSCE Results, Announces How Candidates Can Check Scores
- US Embassy, Lagos Consulate Announce Remaining Public Holidays for 2026
- Ooni Donates ₦100m, Hilux to Sunday Igboho’s Iru Ekun Security Network
- Adeleke Alleges EFCC Plot to Freeze Osun Government Accounts Ahead of Governorship Election
