President of the Dangote Group, Aliko Dangote, has explained why petrol remains expensive in Nigeria despite increased domestic refining capacity, saying local refining does not completely shield the country from international crude oil prices and other market pressures.
Dangote made the clarification during an interview with Arise Television on Tuesday, September 15, 2026.
According to him, the Dangote Petroleum Refinery purchases crude oil at prevailing international market prices and has, at times, paid significant premiums for its feedstock.
He disclosed that the refinery bought crude at as much as $124 per barrel in May, making it difficult to sell refined petroleum products below sustainable market prices.
“We can’t go now and subsidise everything,” Dangote said, while explaining that the refinery could not indefinitely absorb the rising cost of crude.
His comments come amid renewed increases in petrol prices across Nigeria. The Dangote Refinery recently raised its petrol gantry price by ₦85, from ₦1,265 to ₦1,350 per litre, as international crude prices and product replacement costs increased.
The latest adjustment followed several price changes in recent weeks. According to Punch, the refinery’s gantry price rose by ₦185 between August 21 and September 12, 2026.
Dangote also noted that petrol remains cheaper in Nigeria than in some neighbouring countries, saying the price difference has contributed to continued cross-border smuggling.
He, however, assured Nigerians that the refinery would continue supplying the domestic market and said there would be no shortage or fuel queues from its side.
The development highlights the fact that while local refining reduces Nigeria’s dependence on imported refined petroleum products, domestic petrol prices can still be affected by international crude prices, crude procurement costs, exchange-rate movements and other market factors.
