Dangote Refinery shields Nigeria from global fuel price shock, cuts local prices

Dangote Refinery has kept its coastal sales prices flat even as global gasoline prices and freight rates climb, making fuel imports into Nigeria uneconomical. According to S&P Global Commodity Insights, the cost of moving clean products from Northwest Europe to West Africa jumped from $29.70 to $37.12 per tonne, while Lomé’s gasoline prices now exceed Dangote’s offered rates, shutting the usual arbitrage window for importers. Since the end of May, the refinery has cut its ex‑depot prices: Premium Motor Spirit by more than ₦200 per litre, Automotive Gas Oil by over ₦300 per litre, and Jet A1 aviation fuel by more than ₦520 per litre, despite buying crude when international prices were higher. The refinery prices its products based on actual crude procurement costs—locked in weeks or months ahead—rather than daily Brent swings. Analysts say this shows the strategic value of domestic refining: Nigeria is shielded from external supply shocks, foreign‑exchange pressure is eased, and consumers and businesses enjoy stable pump prices. With Dangote’s pricing increasingly seen as the West African benchmark, importers struggle to compete whenever international replacement costs exceed the refinery’s offers. For now, motorists and businesses can expect relatively steady fuel costs, but it’s worth watching whether any policy shifts or further global shocks could shift the balance.

SOURCE: https://dailypost.ng/2026/07/15/dangote-refinery-protects-nigerians-from-global-fuel-price-shock-sp/