The management of Dangote Refinery has attributed the latest petrol prices across Nigeria to global market pressures and challenges in crude oil supply.
Despite the commencement of domestic refining, the refinery said expectations that local refining would significantly ease pump prices have been dampened by external factors, including geopolitical tensions in the Middle East.
Speaking during an interview on Arise Television, the Managing Director of the refinery, David Bird, said the facility operates fully within global 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,” he said.
Bird added that multiple cost components continue to exert pressure on pricing.
“We try and maintain some stability within a commercially acceptable range, but all our cost inputs—from crude to freight and insurance, are impacted,” he stated.
Pump Prices Remain Elevated
According to findings from a market survey on Wednesday, March 25, 2026, showed that the recent drop in global crude oil prices has yet to reflect in retail petrol prices across the country.
This contrasts with the swift increase in pump prices recorded last week when crude prices surged in the international market.
Petrol currently sells at an average of about N1,300 per litre nationwide, following nearly a 20 per cent increase effected by marketers.
Acknowledging the hardship faced by Nigerians, Bird described the situation as part of a wider economic challenge.
“This is a cost-of-living crisis; every facet of the modern economy is impacted by energy,” he said.
He further warned that even if global conflicts were resolved immediately, the effects on supply chains would linger.
“Even if tensions ease, supply chain disruptions will persist for months,” Bird noted.
The refinery boss urged the Federal Government to adopt a broader approach in addressing cost pressures within the sector.
“I think there’s an opportunity for the government to take an all-encompassing view, not just crude price, but the cost of doing business in Nigeria,” Bird said.
He also stressed the need for strategic planning to cushion future shocks.
“Government and industry must think the unthinkable; COVID should have woken us up about the vulnerability of global supply chains,” he added.
Bird also raised concerns over the crude oil allocation framework in Nigeria, alleging that the refinery is under-supplied and often unable to access its preferred crude grades.
“Nigeria has a wide variety of crude grades… we submit our preferences. And not only do we not get the full allocation, very often we don’t get the grades that we are highlighting as our preferences,” he said.
According to him, the shortfall forces the refinery to source crude from the international market at higher costs.
Paying Premium Price For Nigerian Crude Abroad
It was reported that the Dangote Refinery MD revealed that the company is compelled to buy Nigerian crude grades from the global market at a premium, despite operating locally.
“As of now, we’re paying over $18 a barrel premium for those same Nigerian crude grades,” he disclosed.
He explained that only about 30 to 35 per cent of the refinery’s crude needs are met under the Crude-for-Naira arrangement, and even at that, without any price advantage.
“So, 30, 35 per cent under Crude for Naira, we get allocated with no discount, no subsidy. It is international benchmark pricing. Then, we have to pay international benchmark freight rates. And freight has also been severely impacted… insurance rates, et cetera,” Bird added.
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