A top official within the Dangote Group has disclosed that the Dangote Petroleum Refinery is effectively subsidising the petrol and diesel it sells to the Nigerian market
The source, who spoke anonymously, explained that the refinery’s current ex-depot petrol price of N1,200 per litre is actually below the true market value, especially after the sharp rise in global crude oil prices triggered by tensions between the US and Iran.
The Middle East crisis, particularly disruptions around the Strait of Hormuz, pushed Brent crude from $66 per barrel in late February to over $100 per barrel.
Despite the surge, the refinery only adjusted its petrol gantry price from N774 to N1,200, while diesel and aviation fuel prices also climbed.
Airlines have been hit hardest, with Jet A-1 costs rising by more than 350 per cent, sparking fears of a possible shutdown in the sector. The Vice President of the Airline Operators of Nigeria, Allen Onyema, revealed that prices jumped from about N900 per litre before the crisis to between N2,700 and N2,900, with some marketers charging as high as N3,500.
The Dangote official noted that while the refinery has tried to stabilise petrol and diesel prices, it cannot extend the same support to aviation fuel, which is sold strictly at market rates.
“With crude prices rising sharply, we’ve tried to optimise PMS to ease the burden on Nigerians, and to some extent diesel as well. But we can’t subsidise everything, so jet fuel is sold at market price,” the source said, confirming that “optimisation” in this context implies a form of subsidy.
Another insider revealed that the refinery supplies aviation fuel to marketers at under N2,000 per litre, putting the current price at about N1,799.
“I can confirm to you that our jet fuel price as of this (Monday) morning is N1,799. It was even lower before now. That’s the rate we sell to marketers, who then supply the airlines,” the source added.
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NA WA O