A senior official within the Dangote Group has disclosed that the Dangote Petroleum Refinery has been absorbing part of the cost of petrol and diesel supplied to the Nigerian market.
According to the official, the refinery’s ex-depot price of about ₦1,200 per litre for petrol is below prevailing market rates, especially in light of the recent surge in global crude oil prices driven by geopolitical tensions.
Global oil prices rose sharply after disruptions in the Middle East, with Brent crude climbing from about $66 per barrel to over $100 per barrel. This increase has pushed up the cost of refined petroleum products, including diesel and aviation fuel.
Despite these pressures, the refinery has adjusted its petrol pricing upward from earlier levels but maintains that it is still offering the product at a reduced margin to ease the burden on consumers. Diesel prices have also been moderated to some extent.
However, the company noted that it is not extending the same pricing approach to aviation fuel. Jet fuel is being sold at prevailing market rates due to the high cost of crude and the need to maintain operational sustainability.
Industry figures indicate that aviation fuel prices have risen significantly in recent months, placing a heavy financial strain on airline operators.
Another source within the company confirmed that aviation fuel is currently sold to marketers at below ₦2,000 per litre, with recent figures around ₦1,799 per litre. Market data also suggests that locally refined jet fuel remains slightly cheaper than imported alternatives.
The development highlights the impact of global oil market volatility on Nigeria’s downstream sector, as well as the challenges of balancing cost recovery with efforts to stabilise domestic fuel prices.
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