Dangote Refinery has blamed rising petrol prices in Nigeria on global market pressures and challenges in crude oil supply, despite the start of domestic refining
In an interview with Arise Television, Managing Director David Bird explained that expectations that local refining would ease pump prices have been undercut by external factors, including geopolitical tensions in the Middle East.
“On fuel pricing, the refinery is fully exposed to global market forces and operates without subsidies, making it vulnerable to fluctuations driven by geopolitical tensions,” Bird said. He added that multiple cost components—from crude to freight and insurance—continue to push prices up. “We try and maintain some stability within a commercially acceptable range, but all our cost inputs are impacted,” he stated.
Market surveys conducted on 25 March 2026 showed that recent drops in global crude oil prices have yet to reduce retail petrol costs in Nigeria. Petrol currently sells at an average of about N1,300 per litre nationwide, following nearly a 20 per cent increase last week after a surge in crude prices.
Acknowledging the hardship for Nigerians, Bird described the situation as part of a broader economic challenge. “This is a cost-of-living crisis; every facet of the modern economy is impacted by energy,” he said, warning that even if global tensions ease, supply chain disruptions would persist for months.
Bird urged the Federal Government to adopt a comprehensive approach to addressing cost pressures in the sector, noting that strategic planning is essential to cushion future shocks. “Government and industry must think the unthinkable; COVID should have woken us up about the vulnerability of global supply chains,” he added.
He also raised concerns about Nigeria’s crude oil allocation framework, saying the refinery is often under-supplied and unable to access preferred crude grades. “Nigeria has a wide variety of crude grades… we submit our preferences. And not only do we not get the full allocation, very often we don’t get the grades we highlighted,” Bird said, explaining that the shortfall forces the refinery to source crude internationally at higher costs.
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