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Dangote Refinery, Fuel Price and the Principle of Back of Forth

Published

4 months ago

March 28, 2026

Eric

By Eric Elezuo

For the umpteenth time in as many days, the Dangote Refinery has adjusted the pump price of its petroleum products, with special considerations to the premium motor spirit (PMS), popularly called petrol. This has been the sequence since the America/Israel vs Iran War, which erupted on February 28, 2026; a situation that has called to question the ability of the 650,000 barrels per day capacity refinery to sustain the country in times of crisis.

In a statement made available to newsmen, the Dangote Petroleum Refinery reduced its gantry price for petrol to N1,200 per litre and its coastal price to N1,153 per litre, amid ongoing tensions in the Middle East that continue to shape global oil markets.

The adjustment however, marks a downward review in the company’s pricing structure, and is expected to influence fuel supply costs across distribution channels, including depots and retail outlets. It is however, a far cry in the original price of less than N900, which has been market value in Nigeria before the Gulf imbroglio.

Global oil prices have remained volatile since the outbreak of hostilities involving the United States and Israel on one side and Iran on the other, which has disrupted crude shipments from the Gulf region.

The disruption has pushed Brent crude prices above $100 per barrel, forcing countries to explore alternatives to ensure energy security.

In Nigeria, the spike in global crude prices has translated into higher domestic fuel costs. Petrol, which sold for about N870 per litre before the escalation, now averages around N1,500 per litre in parts of the country.

The Dangote Refinery has repeatedly adjusted its petrol gantry prices in response to fluctuations in global crude markets, with multiple revisions recorded since the crisis began.

Across major filling stations nationwide, petrol prices have hovered around N1,350 per litre and above, contributing to rising transport costs and broader inflationary pressures.

With the latest reduction by the refinery, Nigerians expect a gradual easing of pump prices across filling stations.

As the world oil crisis escalates, many Nigerians believe that it is for a reason such as this that the country is privileged to have the Dangote Refinery within its shores. They maintain that the crisis in the Gulf should have little or no effect on the country as a result of two factors:

1. The refinery is sited within the confines of the Nigeria, and

2. The crude oil (raw material) is sourced locally

They argue that movement is not hampered on international waters or by belligerent activities as a result of the war.

“This crude is produced and sourced here in Nigeria. The refinery is right here in Nigeria. So what explains the dilly-dally in the price of the product as if we have to cross the Strait of Hormuz before making it available to Nigerian consumers,” an Energy expert queried.

He questioned the rationale behind Dangote’s back and forth journey on the price of fuel.

“I don’t think anybody has told us the truth yet. We have the crude, and we have the refinery, so why are we buying the product at exorbitant price, and blaming the war in the gulf for it,” he further noted.

But in defence of the foremost refinery, the Chief Executive Officer and Managing Director of the Dangote Refinery, David Bird, raised concerns over Nigeria’s inability to supply sufficient crude oil to the facility, disclosing that deliveries under the government’s crude supply arrangement are falling significantly short of agreed volumes.

Speaking in an interview on Arise Television, Bird said the refinery, which is currently operating at its full capacity of 650,000 barrels per day, requires between 13 and 15 cargoes of crude monthly to meet domestic fuel demand. However, he said the refinery is only receiving about five cargoes, representing just about 30 per cent of expected supply.

He explained that the gap undermines the effectiveness of the Crude-for-Naira arrangement, a policy designed to supply crude to local refiners at international prices but without foreign exchange exposure.

According to him, while the initiative has helped stabilise Nigeria’s foreign exchange pressures, its implementation has been inconsistent, particularly in terms of both volume and crude quality allocation.

“We have been very vocal that there is an existing arrangement in place under the Crude-for-Naira programme commonly misunderstood as a pricing regime, it is not. It is priced at full international benchmark crude oil pricing, however, without the foreign exchange implication.

“That has been very successful in stabilising the FX and I think Nigeria and our relationship with NNPC and Dangote, we should all be very proud of that. That agreement, however, is not only just from volume but also a quality allocation perspective not being met.

“And our demand of the government is just to be transparent with that allocation methodology because what we see under that agreement, we should be getting about 13 to 15 cargos a month and that’s what we could process to meet the domestic fuel requirements of Nigeria. Currently we’re only getting five.

“So that’s an underperformance against that pre-agreed volume contract. Second to that is quality. So Nigeria has a wide variety of crude grades all exported from different terminals and we have a preference,” he stressed.

Many Nigerians have divided on for and against the ability if Dangote to sustain local consumption especially in the midst of the crude crunch occasioned by the gulf crisis, others have exonerated the refinery, heaping the blames on the Federal Government-run Nigerian National Petroleum Corporation Ltd (NNPCL), which has failed in its duty of making the required quantity of crude available to the refinery.

It would be recalled that ever since the launch of the Dangote Refinery, the management has consistently been at loggerheads with many petroleum-associated groups over barefaced treachery and backstabbing.

Stakeholders have said that recent developments, especially the ongoing crisis among the gulf states, highlight the strategic importance of strengthening domestic refining capacity, which Dangote, as at today, chiefly represents.

Featured

Dominican University Hails Peter Obi on 65th Birthday

Published

1 day ago

July 20, 2026

Eric

The Dominican University, Ibadan, has paid glowing tribute to its Pro-Chancellor and former Governor of Anambra State, Mr. Peter Obi, on his 65th birthday, describing him as a visionary leader whose commitment to education, youth development and national progress continues to inspire generations of Nigerians.

In a goodwill message issued on Sunday, the Vice-Chancellor of the university, Prof. Jacinta Opara, lauded Obi’s enduring passion for quality education, noting that his consistent investments in human capital and advocacy for educational excellence have strengthened institutions and offered hope to young people across the country.

According to Opara, Obi has, through his public service and private engagements, remained a steadfast champion of education, making it a cornerstone of his vision for national development.

She said his words, actions and unwavering support for learning had reinforced the conviction that education remains the most effective instrument for building a prosperous, inclusive and sustainable society.

The university also expressed appreciation for Obi’s contributions to the institution as Pro-Chancellor, describing his leadership, generosity and guidance as instrumental to its growth and development.

The statement noted that under his stewardship, Dominican University has continued to pursue academic excellence while remaining committed to its mission of producing morally upright and globally competitive graduates.

It read in part: “As a university founded a decade ago on the rich 800-year educational heritage of the Order of Preachers (Dominicans), we remain profoundly grateful for your visionary leadership, generous support and invaluable contributions as our Pro-Chancellor.”

The institution joined family members, associates and well-wishers in celebrating Obi’s milestone, praying for continued good health, wisdom, strength and divine guidance as he continues to advocate good governance, human dignity, hope and national development.

The message, signed by the Vice-Chancellor, reaffirmed the university’s pride in its association with Obi, whose dedication to education, integrity and selfless service, it said, continues to leave a lasting impact on the nation and inspire future generations.

Featured

Ooni of Ife Loses Elder Brother Prince Adetunji

Published

1 day ago

July 20, 2026

Eric

The Ooni of Ife, Oba Adeyeye Ogunwusi, Ojaja II, has announced the passing of his immediate elder brother, Prince Adetunji Ogunwusi.

The monarch made the announcement in a statement released on Sunday through the Director of Media and Public Affairs at the Ooni’s Palace, Sodiq Lawal.

Describing the late prince as a respected businessman and compassionate leader, the Ooni said Prince Adetunji lived a life dedicated to service, humility and the wellbeing of others.

According to the statement, the death of Prince Adetunji has left a deep void in the Ogunwusi family, the Ojaja Royal Dynasty and the entire Ile-Ife Kingdom.

Prince Adetunji, who was born on December 8, 1967, was a member of the Ojaja lineage of the Giesi Ruling House in Ile-Ife. He was also the Group Chairman of Primewaterview Holdings, where he earned recognition for his contributions to business development and entrepreneurship.

The Ooni noted that his late brother built a reputation as an innovative entrepreneur and visionary leader. Through his business activities, he created opportunities for many people and contributed to economic growth in different sectors.

The monarch further stated that beyond his achievements in business, Prince Adetunji was known for his generosity, kindness and commitment to humanitarian causes. He was said to have quietly supported many individuals and families, offering assistance, guidance and encouragement whenever needed.

The statement added that Prince Adetunji’s influence extended beyond the corporate world, as he remained deeply connected to his roots and maintained a strong interest in the progress and development of Ile-Ife and its people.

The Ooni described his late brother as a dependable adviser, a loving family member and a man whose legacy would continue to inspire future generations.

Family members, friends, associates and well wishers have continued to pay tribute to the late prince, remembering him for his humility, wisdom and positive impact on society.

The palace said further details regarding funeral arrangements and other ceremonies would be announced by the family in due course.

Prince Adetunji’s death marks a significant loss to the royal family and the people of Ile-Ife, who will remember him for his service, leadership and dedication to humanity.

Featured

Harakati Za Holds Pan-African Conference on Economic Restructuring, Political Reforms, Regional Integration in Accra

Published

2 days ago

July 19, 2026

Eric

More than 200 delegates from across Africa are expected to converge in Accra on July 24, 2026, for an international conference on “Economic Restructuring, Political Reforms and Integration for Sustainable Development in Africa.”

The conference, organised by Harakati Za Muungano, will take place at the GNAT Hall and will bring together policymakers, academics, business leaders, traditional authorities, civil society organisations, youth leaders and development partners to explore practical solutions for accelerating Africa’s development through deeper regional integration.

Harakati Za Muungano, a Swahili phrase meaning “Union Movement,” is a pan-African movement committed to promoting African unity, economic transformation and governance reforms that support sustainable development.

The organisation believes that Africa’s vast human and natural resources can only be fully harnessed through stronger regional cooperation, enhanced intra-African trade and governance systems that place the continent’s long-term development at the centre of public policy.

Since its establishment in November 2023, the movement has expanded its operations to 17 African countries, engaging governments, regional institutions, traditional leaders, professionals, youth groups and community organisations.

Its work focuses on policy advocacy, research, civic engagement and humanitarian initiatives aimed at fostering inclusive development, strengthening regional cooperation and encouraging reforms that improve the quality of life of Africans.

The conference will provide a platform for participants to deliberate on critical issues affecting the continent, including constitutional reforms, economic restructuring, regional market integration, industrialisation, governance continuity and sustainable financing models for development.

Organisers expect the discussions to produce practical recommendations that can inform policy decisions at both national and regional levels.

A major focus of the conference will be the movement’s vision of a more integrated Sub-Saharan Africa where barriers to trade and movement are reduced, economic collaboration is strengthened and governments adopt policies that encourage long-term planning, investment and shared prosperity.

The organisation believes that greater integration will unlock new opportunities for businesses, create jobs, promote industrial growth and enhance Africa’s global competitiveness.

Organisers say the conference represents an important opportunity for African leaders and stakeholders to collectively examine bold and innovative approaches to the continent’s future.

With over 200 delegates expected from across the continent, the event is anticipated to foster meaningful dialogue, strengthen partnerships and advance a shared vision of an economically resilient, politically stable and fully integrated Africa.

-Overseeronline.com