Dangote Refinery has explained that high petrol prices across Nigeria are being driven by global market forces and ongoing challenges in crude oil supply, despite the recent start of domestic refining.
Managing Director David Bird told Arise Television that hopes for local refining to lower pump prices have been limited by external factors, including geopolitical tensions in the Middle East.
“Fuel pricing at the refinery is fully exposed to global market forces and operates without subsidies, making it vulnerable to fluctuations caused by international events,” Bird said. He added that costs for crude, freight, and insurance continue to push prices upward. “We try to maintain stability within commercially acceptable limits, but all our cost inputs are affected,” he explained.
A market survey conducted on 25 March 2026 showed that the recent decline in global crude oil prices has yet to translate into lower retail petrol prices. Petrol now sells at an average of about N1,300 per litre nationwide, following a nearly 20 per cent increase after last week’s spike in crude prices.
Bird acknowledged the burden this places on Nigerians, calling it part of a wider cost-of-living crisis. “Every part of the modern economy is affected by energy,” he said, warning that even if global conflicts are resolved immediately, supply chain disruptions would continue for months.
He urged the Federal Government to take a broader view of the sector, considering not only crude prices but the overall cost of doing business in Nigeria. “Strategic planning is essential to prepare for future shocks,” Bird said, noting lessons from the COVID-19 pandemic about the vulnerability of global supply chains.
Bird also raised concerns over Nigeria’s crude oil allocation system, saying the refinery often receives less than its preferred grades. “We submit our crude preferences, yet we frequently don’t receive the full allocation or the grades we request,” he said. The shortfall forces the refinery to source crude from international markets at higher costs, adding further pressure on fuel prices.
