Dangote Refinery, the $20 billion facility owned by Africa’s richest man, Aliko Dangote, has warned that petrol costs in Nigeria might greater than double if the nation continues to rely closely on imported gas, elevating contemporary issues about power prices in Africa’s largest financial system.
In a latest assertion, the refinery mentioned pump costs might climb to as excessive as N1,400 ($0.97) per liter in a post-subsidy market if home refining will not be absolutely embraced. That will be a pointy improve from costs that fell as little as N699 ($0.48) per liter throughout the festive interval.
Dangote Refinery operations test petrol value hikes
The refinery, the world’s largest single-train refinery, mentioned latest value actions underscore what it described as a tough reality for Nigeria’s downstream sector. With out native refining capability, gas importers would proceed to dictate costs, leaving shoppers uncovered to sharp swings in world markets and overseas change pressures.
“Current value actions additional spotlight an uncomfortable actuality,” the corporate mentioned. “Within the absence of the Dangote Petroleum Refinery, gas importers would proceed to function with out restraint, with petrol costs doubtlessly escalating to ranges estimated at as much as N1,400 per litre in a post-subsidy surroundings.” It added that its operations have helped preserve costs from rising sooner than they in any other case would.
Claims of shutdown referred to as deceptive
The feedback got here as refinery officers pushed again towards stories that the ability had shut down its petrol unit for upkeep. The corporate described the claims as inaccurate and deceptive, saying they have been getting used to justify one other spherical of pump value will increase.
Officers on the refinery mentioned operations have continued with out interruption and that no vans have been turned away. On Saturday alone, the refinery equipped 43.3 million liters of petrol to the Nigerian market, they mentioned, a quantity they famous is roughly half greater than the nation’s estimated day by day consumption.
“Have we stopped loading or turned again a single truck?” one official mentioned, asking to not be named as a result of they weren’t licensed to talk publicly. “On Saturday alone, we loaded 43.30 million liters of PMS.”
Petrol deliveries lag whereas consumption falls
This comes towards the backdrop of earlier issues raised by Nigeria’s gas regulator about provide ranges from the refinery. In December, the Nigerian Midstream and Downstream Petroleum Regulatory Authority mentioned petrol deliveries from the Dangote Refinery fell in need of official expectations in November, whilst general gas availability improved nationwide.
In accordance with the regulator’s November 2025 State of the Midstream and Downstream Truth Sheet, the refinery was anticipated to produce about 35 million liters of petrol a day to the home market. Precise deliveries averaged 23.52 million liters day by day throughout the month. The shortfall occurred as Nigeria’s estimated petrol consumption declined to about 52.9 million liters a day, down from 56.7 million liters in October, easing some stress on provide.
