S&P Global reveals the real price of Dangote petrol amid crude price crash

• A caller study has said that Dangote Refinery’s petrol is excessively pricey comparative to the clang successful crude lipid prices
• The study disclosed that the caller terms reductions by the refinery are not important compared to the autumn successful crude lipid price
• While crude lipid prices fell 17.9%, the Dangote Refinery has lowered its gantry terms by conscionable 1.7%, from N880 per litre to N835

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the system for implicit a decade.

The terms of petroleum products from the Dangote Refinery has been seen arsenic 1 of the reasons petroleum merchandise imports persist successful Nigeria.

S&P Global, an American fiscal analytics company, disclosed successful its caller study that Dangote’s terms simplification was not important capable comparative to the planetary clang successful crude prices.

Aliko Dangote's refinery petrol terms is excessively pricey comparative to crude lipid prices. Credit: Bloomberg/Contributor
Source: UGC

Dangote Refinery crashes petrol prices

The mega refinery has reduced petrol and different petroleum merchandise prices respective times, creating a terms warfare with manufacture leaders.

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The refinery crashed its PMS terms from N1,100 per litre successful September past year, erstwhile it began petrol production, to N860 per litre successful March 2025, earlier expanding its prices again owed to the illness of the naira-for-crude deal.

Dangote Refinery’s existent prices promote imports

However, the American concern steadfast said the refinery did not little its loading prices importantly enough, starring to monolithic PMS imports by marketers.

According to S&P Global, the incentives to vessel products to West Africa were owed to Dangote Refinery, stating that portion level prices crashed massively owed to crude lipid prices, Dangote has not lowered its loading prices.

The study said that betwixt April 1 and 9, the Eurobob M1 swap dropped from $734.25/MT to $603/MT, representing a 17.9% drop, earlier recovering.

However, it said that implicit the period, Dangote’s motortruck prices astatine its loading gantry dropped lone 1.7% from N880 per litre to N865.

The study disclosed that the improvement had encouraged merchandise imports successful West Africa, wherever precocious section prices person led marketers to import from planetary traders successful larger volumes.

Dangote Refinery directs filling stations to adjust

Legit.ng reported that the 650,000 bpd-capacity refinery reduced its gantry petrol prices connected Wednesday, April 16, 2025, to N835 per litre, asking its spouse retail outlets successful Lagos to merchantability astatine N890 from N930 per litre.

The refinery said:

“In the South-West, the terms volition beryllium N900 per litre, reduced from N930. In the North-West and North-Central, the terms volition beryllium N910 per litre, lowered from N940. In the South-East, South-South, and North-East, the terms volition beryllium N920 per litre, down from N950.”

Findings amusement that immoderate filling stations successful Ogun and Lagos states person reduced their prices, sparking a caller circular of contention successful the sector.

It was observed that SGR, an autarkic marketer, besides reduced its prices, selling beneath the approved Dangote rate.

Punch reports that afloat implementation of the naira-for-crude statement and the existent driblet successful crude prices volition let Dangte to trim prices and merchantability petrol astatine an affordable rate.

Massive petrol imports heading to West Africa

However, S&P Global said that threats of further tariffs from the US and the ongoing arbitration with West Africa person led to a displacement successful European petrol export flows.

It disclosed that tariff threats and changes successful Nigeria’s refining capableness person seen a flip successful the inclination this year, arsenic ample volumes are presently acceptable to get successful West Africa’s Offshore Lome hub.

Dangote Refinery's terms is excessively precocious compared to imported petrol. Credit: Bloomberg/Contributor
Source: UGC

Ship-tracking information from S&P Global Commodities astatine oversea shows that astir 4 cardinal metric tonnes of petrol are projected to beryllium delivered into West Africa from each locations implicit 30 days to April 27, the highest successful implicit 2 years.

Petrol imports drop

A erstwhile study by Legit.ng shows that traders imported 156.897 cardinal litres of petrol successful 8 days, betwixt April 8 and 16, 2025.

The main enforcement of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said that petrol imports person dipped from 44.6 cardinal litres regular successful August 2024 to 14.7 cardinal litres successful April 2025.

Nigeria plans a National Petroleum Product Stockpile reserve

Meanwhile, Legit.ng earlier reported that the Nigerian government is planning to physique a nationalist strategical petroleum products stockpile, modelled aft the US crude reserve, to hedge the system against planetary marketplace disruptions.

Farouk Ahmed, the main enforcement of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), disclosed this connected Tuesday, April 15, 2025, saying the determination would mitigate proviso shocks and boost Nigeria’s energy security.

Nigeria often battles substance scarcity and agelong queues contempt being a apical planetary crude lipid producer.

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Source: Legit.ng