A senior official of Dangote Petroleum Refinery has disclosed that the company has been subsidising the price of petrol and diesel supplied to the Nigerian market amid rising global crude oil costs.
The official said the refinery’s ex-depot petrol price of about N1,200 per litre is below market reality, following a sharp increase in global oil prices triggered by geopolitical tensions.
Global Oil Shock Drives Price Increase
The official linked the price adjustments to a surge in crude oil prices following renewed conflict in the Middle East, which disrupted supply routes, including the Strait of Hormuz.
Brent crude, which stood at about $66 per barrel in February, reportedly rose above $100 per barrel during the crisis, significantly increasing production costs.
As a result, the refinery raised its petrol gantry price from N774 to around N1,200 per litre.
Diesel and aviation fuel prices were also affected by the global spike.
Aviation Fuel Crisis Deepens
The aviation sector has been hit hardest by the fuel price surge, with Jet A-1 prices rising by more than 300 per cent in recent months.
Airlines are reportedly considering shutting down operations as fuel costs become unsustainable.
Before the crisis, jet fuel sold for about N900 per litre. Prices have now climbed to between N2,700 and N2,900, with some locations reportedly selling as high as N3,500 per litre.
Airline Operators of Nigeria has warned that the situation is threatening airline operations across the country.
Dangote Refinery Defends Pricing Strategy
The Dangote refinery official said the company is trying to balance commercial realities with public pressure.
He explained that while petrol and diesel prices are being “optimised” to cushion the impact on consumers, aviation fuel is being sold at full market value.
“With the crude price moving up steeply, we try to optimise the price of PMS as much as possible to help the public. We can’t be subsidising everything, and so we sell the jet fuel at the market price,” the official said.
Another company source added that aviation fuel is currently sold at about N1,799 per litre, with earlier prices even lower. The fuel is supplied to marketers who then sell to airlines.
Market Data and Industry Dispute
A recent report by the Major Energies Marketers Association of Nigeria placed Dangote’s aviation fuel price at around N1,732 per litre, while imported alternatives were estimated at about N1,835 per litre.
However, airlines argue that retail prices remain far higher.
In a recent communication, airline operators said jet fuel prices have jumped from about N900 per litre to over N3,300 per litre, describing the increase as “artificial and unsustainable.”
Marketers Respond
Fuel marketers attributed the rising prices to global market disruptions, especially geopolitical tensions affecting crude supply chains.
They also disputed the highest quoted figures, stating that internal market checks showed lower average prices than those claimed by airlines.
Marketers advised airlines to explore alternative suppliers if they find pricing unacceptable.
Aviation Sector Under Pressure
Despite ongoing discussions between stakeholders, fuel prices have remained high since mid-April 2026.
Airlines continue to warn that operations may be suspended if costs do not stabilise, raising concerns about the wider impact on Nigeria’s aviation industry and travel sector.
For now, the fuel pricing dispute remains unresolved as global oil volatility continues to shape local market conditions.
