The management of Dangote Refinery has explained that the recent rise in petrol prices across Nigeria is largely due to global market pressures and challenges in crude oil supply, despite the country’s domestic refining capacity.
Speaking in an interview on Arise Television, Managing Director David Bird said the refinery operates entirely within international market dynamics and without government subsidies.
“Fuel pricing is fully exposed to global market forces, making it vulnerable to geopolitical tensions,” Bird said. He added that costs for crude, freight, and insurance continue to push prices higher.
Petrol Prices Remain High
A market survey conducted on March 25, 2026, showed that the recent dip in global crude prices has yet to impact retail petrol prices in Nigeria. Petrol currently averages around N1,300 per litre nationwide, following a nearly 20% increase by marketers last week.
Bird acknowledged the economic strain on Nigerians, describing the situation as part of a broader cost-of-living crisis. “Every aspect of the economy is affected by energy,” he said, warning that supply chain disruptions will linger even if global tensions ease.
Challenges in Crude Supply
The Dangote Refinery boss also criticized Nigeria’s crude allocation framework, saying the facility is often under-supplied and unable to access preferred crude grades. This shortfall forces the refinery to purchase Nigerian crude from international markets at a premium.
“We’re currently paying over $18 per barrel extra for the same Nigerian crude grades,” Bird revealed, noting that only 30–35% of the refinery’s crude needs are met under the Crude-for-Naira scheme, with no price advantage.
He called on the Federal Government to take a comprehensive approach to addressing costs in the sector and stressed the importance of planning for future disruptions.
“Government and industry must prepare for unexpected shocks; COVID-19 showed us how fragile global supply chains are,” Bird added.
