The Dangote Refinery has said Nigerians should not expect an immediate drop in petrol prices, citing persistent global pressures and structural challenges in the energy market.
The refinery’s Managing Director, David Bird, explained that despite local refining capacity, fuel pricing remains tied to international market dynamics, particularly ongoing tensions in the Middle East.
Speaking during a television interview, Bird noted that the refinery operates without subsidies and is therefore fully exposed to fluctuations in global crude oil prices, freight costs and insurance.
He said, “We strive to maintain stability within a reasonable commercial range, but all cost components from crude supply to logistics are influenced by global developments.”
Findings across major filling stations indicate that petrol prices remain elevated, with an average pump price hovering around N1,300 per litre nationwide, following a recent increase linked to rising crude oil prices.
Bird described the situation as a broader economic strain, warning that high energy costs are fuelling a cost-of-living crisis across the country.
According to him, even if geopolitical tensions ease immediately, disruptions in global supply chains could continue to impact fuel pricing for several months.
He urged policymakers to adopt a holistic approach in addressing the issue, stressing the need to review regulatory costs and improve the overall business environment in Nigeria.
The refinery boss also called for long-term strategies, including the development of strategic reserves, to cushion the impact of future global shocks.
On crude supply, Bird raised concerns over allocation challenges within Nigeria’s petroleum sector, alleging that the refinery does not receive sufficient volumes or preferred grades of locally produced crude.
He disclosed that the shortfall has forced the company to source crude from the international market at a premium, despite the availability of similar Nigerian grades abroad.
According to him, the refinery currently pays significantly higher prices for such crude, alongside elevated freight and insurance costs, further driving up production expenses.
Industry analysts say the combination of global oil market volatility and domestic supply constraints continues to limit the expected relief from local refining, keeping petrol prices high in the near term.
