Oil marketers in Nigeria have shifted to support the Dangote Refinery supplying the country’s entire petrol demand, after months of opposing what they saw as monopolistic control.

The change comes amid rising tensions in the Middle East, which have disrupted crude imports and pushed petrol prices above ₦1,000 per litre. Brent crude briefly hit over $100 per barrel before dropping to around $88 on Tuesday.

The Dangote Refinery, commissioned in May 2023, had raised its gantry price to ₦1,175 per litre last week due to higher crude costs. On Tuesday, the refinery reduced the gantry price to ₦1,075 per litre, while coastal deliveries now sell at ₦1,050 per litre.

Diesel prices were also lowered to ₦1,430 per litre from ₦1,620.
Anthony Chiejina, Chief Communications Officer at Dangote Group, said the price cuts reflect global oil market trends.

Dr. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), called the refinery “our salvation,” noting that higher prices are better than scarcity amid the Iran war. He confirmed that marketers now source all petrol from Dangote, whether it’s 50% or 100% of supply.

Economist Kelvin Emmanuel explained that petrol price rises are influenced by costs such as crude imports from the US, Brazil, and other countries, vessel fees, insurance, and levies. He urged the Federal Government to review local crude pricing to ease the burden on consumers.

With marketers fully relying on the Dangote Refinery, Nigeria’s domestic petrol supply is expected to stabilize despite international uncertainties, offering relief to motorists nationwide.