Dangote Refinery Keeps Nigerian Fuel Prices Stable Amid Global Pressures – S&P
Dangote Petroleum Refinery & Petrochemicals continues to shield Nigeria’s fuel market from external price shocks, maintaining relatively stable domestic petrol prices despite rising global costs, according to the latest market intelligence from S&P Global Commodity Insights.
The report noted that surging crude oil prices, higher shipping costs and tightening global supply have driven a sharp increase in international gasoline prices. However, in Nigeria, petrol prices are effectively being “capped” by Dangote’s pricing, limiting the ability of importers to pass rising costs on to consumers.
Market participants revealed that while gasoline meeting Ghanaian specifications is currently trading at higher premiums, Nigerian-specification cargoes remain constrained. This is largely because Dangote Refinery has kept its coastal sales prices unchanged, even as international price pressures intensify.
A trader was quoted as saying that fuel prices in Lomé have exceeded Dangote’s sales prices, effectively eliminating arbitrage opportunities and making fuel imports into Nigeria increasingly uneconomical under current conditions.
The situation is further compounded by rising freight rates. S&P Global reported that the cost of transporting clean petroleum products from Northwest Europe to West Africa climbed from $29.70 per metric tonne at the end of June to $37.12, as vessels shift to serve alternative markets.
Overall, the report highlights the refinery’s growing role in stabilising Nigeria’s downstream sector and insulating the domestic market from volatile global fuel dynamics.