A senior official at the Dangote Petroleum Refinery has revealed that the facility is effectively subsidising petrol and diesel prices in Nigeria to ease the burden of rising global crude oil costs.
The official, who spoke anonymously on Monday, said the refinery’s ex-depot price of about ₦1,200 per litre for petrol remains below prevailing market rates despite significant increases in crude oil prices.
According to the source, global oil prices surged בעקבות geopolitical tensions involving Iran and the United States, including disruptions around the Strait of Hormuz. Brent crude reportedly rose from about $66 per barrel in late February to over $100, sharply increasing production costs.
“As crude prices moved up steeply, we tried to optimise the price of PMS as much as possible to help the public,” the official said.
When asked whether the price optimisation amounted to a subsidy, the official confirmed that it did.
The development highlights ongoing pressure within Nigeria’s downstream petroleum sector, where pricing remains sensitive to global oil market fluctuations. It also underscores the role of local refining capacity in moderating fuel costs, particularly during periods of international price volatility.
