Fresh drama has erupted in Nigeria’s downstream oil sector, but the Dangote Petroleum Refinery says there is nothing to see here except trucks rolling out fully loaded with petrol.
Amid weekend whispers that the $20 billion Lekki-based refinery had shut its petrol processing unit for maintenance, company officials moved swiftly to shut down the claims. According to refinery sources, the plant pumped an eye-catching 43.3 million litres of Premium Motor Spirit (PMS) into the Nigerian market on Saturday alone, a volume they say far exceeds the country’s daily fuel consumption.
“Have we stopped loading even one truck?” a refinery official asked pointedly. “On Saturday alone, we loaded over 43 million litres of petrol. That is about 50 per cent more than Nigeria’s daily consumption.”
Rumours, Prices and a Market on Edge
The denial comes against the backdrop of sudden price hikes at private depots across Lagos, Warri and other fuel trading hubs. Over the weekend, several depots pushed ex-depot petrol prices above N800 per litre, blaming the increase on what they claimed was a shutdown at the Dangote refinery.
Refinery officials dismissed the narrative, accusing some marketers of using false supply concerns as justification to reverse recent price cuts. Just weeks earlier, the Dangote refinery had stunned the market by slashing its petrol gantry price from N828 to N699 per litre—a move that reportedly inflicted heavy losses on depot owners and traders holding higher-priced inventory.
Fuel Security, No Shortage Fears
To further calm nerves, another refinery source revealed that Dangote currently holds enough petrol in storage to meet national demand for more than 20 days.
“We have sufficient stock to supply Nigeria for over three weeks,” the official said. “There is no reason for panic buying, price spikes, or talk of scarcity.”
The refinery also urged Nigerians to buy petrol from stations retailing Dangote-supplied products, noting that such outlets are fully stocked and selling at lower prices.
Market Pushback After Price Cuts
Despite Dangote’s assurances, depot prices have continued to rise. Data from petroleumprice.ng showed that within 48 hours, ex-depot prices at several facilities jumped sharply. Eterna and Integrated depots reportedly raised prices to N800 per litre, up from N726 earlier in the week, while Warri depots sold as high as N805 per litre by Friday.
Industry sources linked the price movements to resistance from marketers still reeling from Dangote’s aggressive price reduction in December, which cut N129 off the gantry price in one move.
During a recent briefing, Dangote Group President Aliko Dangote vowed that the new pricing regime would stand, with MRS filling stations selling petrol at N739 per litre nationwide. As more MRS outlets adopted the lower price in Lagos and Ogun states, motorists began avoiding stations selling at higher rates—forcing reluctant retailers to cut prices or risk losing customers.
A Battle for Control of the Pump Price
While marketers complain of mounting losses, Dangote has insisted that his refinery is also absorbing costs in the process. The unfolding situation highlights a growing power struggle in Nigeria’s deregulated fuel market, where Dangote’s massive refining capacity is reshaping supply dynamics and challenging long-established pricing structures.
