Refinery Faces Pressure Amid Rising Crude Costs
A senior official of Dangote Petroleum Refinery says the company subsidises petrol and diesel supplied to Nigeria.
He explained that the refinery sells petrol at about ₦1,200 per litre. He said this price sits below current market realities due to rising global crude costs.
Global Oil Shock Pushes Prices Higher
The official linked recent price changes to a global oil shock. He pointed to renewed conflict in the Middle East as a key trigger.
He said the crisis disrupted supply routes, including the Strait of Hormuz.
Brent crude rose sharply during the period. It moved from about $66 per barrel in February to over $100 per barrel.
This surge increased production costs across the board.
As a result, the refinery raised its petrol gantry price from ₦774 to about ₦1,200 per litre.
Diesel and aviation fuel prices also climbed in response to the global spike.
Aviation Fuel Crisis Deepens Across Nigeria
The aviation sector faces the worst impact from the price surge.
Jet A-1 fuel prices increased by more than 300 percent in recent months.
Airlines now struggle with rising operational costs. Some operators warn they may suspend flights.
Before the crisis, jet fuel sold for about ₦900 per litre. Prices now range between ₦2,700 and ₦2,900 per litre.
In some locations, prices reach as high as ₦3,500 per litre.
The Airline Operators of Nigeria says the situation threatens the survival of airlines.
Dangote Refinery Explains Pricing Approach
The refinery says it balances business needs with public pressure.
The official said the company adjusts petrol and diesel prices to reduce pressure on consumers.
However, he said the refinery cannot subsidise all fuel types.
“We optimise PMS pricing to support the public,” he said. “We cannot subsidise everything, so we sell jet fuel at market price.”
Another company source said aviation fuel currently sells at about ₦1,799 per litre.
He added that earlier prices were lower. He also explained that marketers buy the fuel and resell it to airlines.
Market Data Shows Price Differences
The Major Energies Marketers Association of Nigeria estimated Dangote’s aviation fuel price at about ₦1,732 per litre.
It also placed imported alternatives at around ₦1,835 per litre.
However, airlines disagree with these figures.
They say retail prices have climbed above ₦3,300 per litre.
They describe the increase as artificial and unsustainable.
Marketers Defend Price Movements
Fuel marketers link the price surge to global supply disruptions.
They point to geopolitical tensions as a major driver of instability in crude oil markets.
Marketers also dispute the highest price claims from airlines. They say internal checks show lower average prices.
They advised airlines to explore alternative suppliers if they find prices too high.
Aviation Sector Remains Under Pressure
Fuel prices have stayed high since mid-April 2026.
Airlines continue to warn about possible service disruptions. They say they may suspend operations if costs remain unstable.
The dispute between airlines, marketers, and refiners remains unresolved.
Global oil volatility continues to shape Nigeria’s fuel market and aviation outlook.
