Monday, March, 9 2026 - Experts in Nigeria’s downstream petroleum sector have defended the pricing structure of the Dangote Petroleum Refinery, accusing some fuel markers of attempting to blackmail the refinery and mislead the public over the recent increase in petrol prices.
The experts said reports suggesting that the refinery’s
latest adjustment is solely responsible for the recent hike in fuel prices were
misleading, noting that importers are also bringing in petrol at almost a
N1,000 per litre, while the refinery’s coastal price is N948 and the gantry or
ex-depot price stands at N995 per litre.
They stressed that public comparisons fail to consider the
differences in pricing structures and supply channels.
According to the experts, N948 per litre represents the
coastal delivery price, which refers to petroleum products transported by
marine vessels or barges from the refinery to depots along the coastline. On
the other hand, N995 per litre represents the gantry or ex-depot price, which
is the rate paid by marketers who load petrol directly from the refinery into
tanker trucks at the loading gantry for onward distribution across the country.
The experts explained that the two figures should not be
interpreted as conflicting prices but rather as different logistics
arrangements within the petroleum distribution chain.
Speaking with our correspondent on Sunday, energy expert
David Okon said the pricing adjustments were inevitable given prevailing market
conditions.
According to him, Dangote Petroleum Refinery &
Petrochemicals operates in a deregulated market and procures crude at
international prices, which have risen sharply due to geopolitical tensions in
the Middle East.
“The refinery is already absorbing part of the cost to
cushion the impact of the crisis on Nigerians. We can see what is happening in
other parts of the world where shortages and scarcity are being reported
despite higher prices, yet the Dangote Refinery has continued to guarantee
domestic supply,” he said.
Okon explained that when the refinery previously sold petrol
at N774 per litre, crude oil was landing at about $68 per barrel. However, with
crude now arriving at roughly $95 per barrel, the cost difference of about $27
per barrel translates to nearly N40,000 per barrel when converted to Naira.
“You cannot expect a refinery to continue selling at the old
rate under those circumstances,” he added.
“If imported products were truly cheaper, importers would
still be selling at the previous prices.”
He warned that without local refining capacity, Nigeria
could have faced severe fuel shortages, long queues at filling stations and a
resurgence of black market sales.
“Without the Dangote Refinery, many filling stations would
likely shut down, queues would return across the country and black market
traders would exploit the situation, hawking four litres keg at N20,000 or
more. The refinery has effectively prevented that scenario,” he said.
Another analyst, Mohammed Ibrahim, also faulted narratives
circulating in some quarters suggesting that the refinery’s pricing adjustment
was responsible for worsening economic hardship in the country.
Accusing some importers of attempting to manipulate public
perception, he said, “What we are seeing is nothing but deliberate blackmail by
some fuel importers who feel threatened by local refining.
“They are twisting the pricing structure to mislead
Nigerians and create unnecessary panic in the market.
“By exaggerating the refinery’s gantry price and ignoring
the comparable costs of imported fuel, they are trying to make it appear as
though Dangote Refinery is the cause of rising prices and economic hardship.
This is a calculated attempt to protect their import businesses and undermine
local refining, which is meant to reduce our dependence on imported petrol.”
Ibrahim added that such narratives were aimed at portraying
the refinery as the reason Nigerians were struggling with higher petrol prices.
He stressed that petrol pricing in Nigeria is largely
influenced by global crude oil prices, exchange rate fluctuations, and
distribution logistics, noting that these factors affect both locally refined
and imported fuel in the country’s deregulated market.
Afolabi Olowookere, Managing Director and Chief Economist at
Analysts’ Data Services and Resources (ADSR) Limited, explained that although
Nigerians expect refined products from the refinery to be significantly
cheaper, prevailing market realities such as global crude oil prices, the cost
of crude supply and refining margins make substantial price reductions unlikely
in the short term.
“Therefore, improving domestic crude allocation to the
refinery would strengthen supply stability and enhance the long term benefits
of local refining for the economy,” Olowookere noted.
Recent conflicts in the Middle East and disruptions along
key shipping lanes have tightened global oil supply, pushing crude prices past
$90 per barrel, a development that directly raises the cost of both imported
and locally refined petrol in Nigeria.
The unrest has pushed up fuel costs and transportation in
several countries, including Ghana, the United States, the United Kingdom,
South Africa, India, Canada, Brazil, Germany, France, and Japan, as rising
crude prices increase the cost of refining, distribution, and logistics
globally.
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