A senior figure in the Dangote Group has revealed that the Dangote Petroleum Refinery is absorbing part of the cost of petrol and diesel supplied to the domestic market.
Speaking confidentially, the official said the refinery’s N1,200 per litre ex-depot petrol price is lower than what market conditions would typically dictate, especially after the recent spike in crude oil prices linked to geopolitical tensions.
The surge followed disruptions around the Strait of Hormuz, which pushed Brent crude from $66 per barrel to above $100.
Despite the increase, the refinery adjusted its petrol price from N774 to N1,200, while diesel and aviation fuel also experienced sharp rises.
Airlines have been particularly affected, with Jet A-1 prices jumping by over 350 per cent, raising fears of operational shutdowns. The Vice President of the Airline Operators of Nigeria, Allen Onyema, disclosed that prices climbed from around N900 per litre before the crisis to between N2,700 and N2,900, with some sellers demanding as much as N3,500.
The Dangote official noted that while efforts have been made to ease the burden on petrol and diesel consumers, the refinery cannot extend the same support to aviation fuel, which is sold at prevailing market rates.
“With crude prices rising steeply, we’ve tried to keep PMS prices as low as possible to help 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 the pricing approach effectively amounts to a subsidy.
Another insider added that the refinery currently sells aviation fuel to marketers for less than N2,000 per litre, with a price of about N1,799 as of Monday.
“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 said.
