Nigeria’s Dangote refinery has again raised its price for Premium Motor Spirit, commonly known as petrol, to N1,175 ($0.75) per litre, marking its third upward review in one week.
The refinery, which had earlier paused sales to marketers on Sunday due to crude oil price uncertainty, said the new increase is driven by current market realities, particularly the ongoing tension in the Middle East.
Local news outlets in the country also confirmed that the refinery has increased its Automotive Gas Oil (diesel) price to around N1,620 ($1.03) per litre.
The refinery said the tension in the Middle East has affected its production and import costs as it has been unable to source sufficient crude locally from the state owned oil firm, NNPC Limited.
According to industry estimates, Dangote imports about two thirds of its crude feedstock from the United States.
Recently, the price of crude oil has risen sharply to above $100 per barrel, the highest level since 2022.
The surge is driven by the ongoing war involving the United States and Israel against Iran. The escalation has also affected various energy producers in the region, including Qatar and Iraq.
Dangote focuses on local sales amid global oil shock
Speaking to reporters at the Lekki plant in Lagos on Monday, the CEO of the refinery, David Bird, said the firm continues to seek more local crude oil in order to lessen the impact of the global oil shock on its production costs.
Bird also added that the refinery will for now prioritise sales of petrol and other refined products locally rather than exporting, in order to meet domestic demand.
So far, Nigeria’s NNPC has been unable to meet the crude supply demand of the Dangote refinery, as most of its production quota is used for crude for debt swap arrangements with foreign operators.
Nigeria may face higher energy costs as Dangote now controls about 60% of the market, with importers accessing only about 40%. Private importers have also increased the price of their products across the country.
Though Africa’s leading oil producer, Nigeria lacks a strategic petroleum reserve that could help mitigate rising energy costs.
Dangote’s CEO said the refinery has informed its buyers and marketers of the revised product prices. He, however, did not comment on whether the increases would be temporary.
