Business

Dangote’s fuel prices still high despite global crude slump — S&P Global

Published

11 months ago

April 18, 2025

Dangote’s fuel prices still high despite global crude slump — S&P Global

Despite recent reductions, petrol prices from the Dangote Petroleum Refinery remain relatively high when compared to the global drop in crude oil prices, according to a new report by S&P Global.

This pricing strategy, analysts say, has made fuel importation into Nigeria more attractive for marketers.

The 650,000 barrels per day refinery, located in Lekki, Lagos, has cut petrol prices multiple times since launching operations. The refinery brought down its pump price from around N1,100 per litre in September to N860 in March, though prices later increased again following a pause in the naira-for-crude exchange policy.

However, S&P Global pointed out that the refinery’s reductions did not match the global dip in fuel prices.

“Incentives to ship products to West Africa have also come from the pricing at Nigeria’s Dangote refinery. While flat prices have been driven down massively amid falling crude prices, Dangote has not lowered gantry prices for truck volumes significantly.

“Between April 1 and April 9, the Eurobob M1 swap fell from $734.25 per metric tonne to $603/MT, a 17.9 per cent fall, before recovering somewhat. But over the same period, Dangote’s truck price at the gantry dropped just 1.7 per cent from N880/litre to N865/litre, according to reporting from the MEMAN retail organisation.

“This has encouraged a flood of products to West Africa, where high domestic prices have led marketers to import from international traders in greater volumes,” the report said.

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On Wednesday, the refinery adjusted its gantry price downward again to N835 per litre and advised partners to retail at N890 per litre within Lagos.

“High-quality Dangote petrol will now be available at the following prices across all our partner retail outlets: Key partners, including MRS, AP (Ardova), Heyden, Optima Energy, Hyde, and Techno Oil, will offer petrol at N890 per litre, down from N920 in Lagos.

“In the South-West, the price will be N900 per litre, reduced from N930. In the North-West and North-Central, the price will be N910 per litre, lowered from N940. In the South-East, South-South, and North-East, the price will be N920 per litre, down from N950,” the company said in a statement on Wednesday.

A market survey conducted by our correspondent at several stations in Lagos and Ogun States revealed further price reductions by various outlets, as a fresh round of competition unfolds.

Independent player SGR, which operates four outlets in Mowe and Sagamu, slashed its pump price to N878 per litre—lower than Dangote’s. Meanwhile, Heyden and MRS were seen selling at N885 and N890 respectively, although some Dangote-affiliated stations and outlets run by the Nigerian National Petroleum Company Limited still charged around N910 to N920 per litre.

A source close to the Dangote Group, who requested anonymity due to lack of authorisation to speak on the matter, revealed that a more significant price cut had been scheduled for April 10—Aliko Dangote’s 68th birthday—but the suspension of the naira-for-crude policy stalled the plan.

“Alhaji was planning a massive price cut on his birthday, April 10, but that could not happen because of the suspension of the naira-for-crude policy. Nevertheless, he was still able to do something, though marginally.

“Now that the Federal Government has returned the naira-for-crude policy fully and the crude prices are crashing, the competition has returned. I can tell you that the Dangote refinery is planning to crash the price of petrol and make it affordable for the masses,” the source said.

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In addition to the local dynamics, S&P Global reported a broader shift in global petrol trade patterns. Europe, traditionally exporting large volumes to the US during summer, has rerouted shipments toward West Africa this year.

“Typically, the summer driving season sees increased flows from Europe to the US Atlantic Coast amid an uptick in summer driving demand. At the same time, specification differences between Europe and WAF, which exist in the summer, disappear in the winter, typically resulting in fewer volumes fixed to Nigeria.

“The threat of tariffs and changes in Nigeria’s refining landscape has seen this trend flip in 2025. Large volumes are presently set to arrive in West Africa’s Offshore Lome hub, while the USAC has been demanding more limited flows amid demand-side fears and tariff threats,” it was reported.

Citing tracking data from S&P Global Commodities at Sea, the report revealed that around four million metric tonnes of petrol are set to arrive in West Africa in the 30 days leading up to April 27 — a level not recorded in over two years.

This influx coincides with a surge in Nigerian fuel imports. Between April 8 and 16, traders brought in 156.9 million litres of petrol, according to import data.

Meanwhile, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed, stated on Tuesday that daily imports of petrol have dropped significantly — from 44.6 million litres per day in August 2024 to just 14.7 million litres per day as of April 2025.
It should be noted that Dangote is still in legal proceedings with the NMDPRA over the agency’s decision to grant import licences to independent fuel marketers.

Dangote’s fuel prices still high despite global crude slump — S&P Global

(PUNCH)

Related Topics:crude slump Dangote fuel prices

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Petrol Prices Reach ₦1,080 Per Litre in Lagos as Global Oil Prices Soar

Published

10 hours ago

March 7, 2026

Trends Admin

Petrol Prices Reach ₦1,080 Per Litre in Lagos as Global Oil Prices Soar

Petrol prices in Lagos State have surged to as high as ₦1,080 per litre amid rising global crude oil prices and ongoing geopolitical tensions in the Middle East. Market surveys conducted across several filling stations on Saturday revealed that the price of Premium Motor Spirit (PMS) now ranges between ₦1,020 and ₦1,080 per litre, depending on location and station.

The increase follows a recent adjustment in the ex-depot price by the Dangote Petroleum Refinery, which raised its gantry price from ₦874 to ₦995 per litre. This adjustment determines the cost at which fuel marketers purchase petrol before selling it to consumers. Analysts say the hike is linked to rising global crude prices, foreign exchange pressures, and distribution costs.

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As of the latest trading session, Brent crude was priced at about $92.69 per barrel, driven by hostilities involving the United States, Israel, and Iran, which have raised concerns over potential disruptions in global oil supply. Energy experts warn that continued volatility in international oil markets could push domestic petrol prices in Nigeria even higher, possibly approaching ₦1,100 per litre in the coming weeks.

The price spike is not limited to Lagos. Reports from Ibadan indicate that petrol is selling at up to ₦1,200 per litre in some areas. Consumers and transport operators have expressed concerns, noting that higher fuel prices will increase transport fares, logistics costs, and the overall cost of living.

The Dangote Petroleum Refinery stated that its pricing adjustments reflect market realities and operational costs, and the refinery has absorbed part of the increase to ease the burden on consumers. Nevertheless, analysts advise Nigerians to expect continued fluctuations in petrol prices as global supply and geopolitical factors evolve.

Petrol Prices Reach ₦1,080 Per Litre in Lagos as Global Oil Prices Soar

Business

Recapitalisation: 30 Nigerian banks meet CBN minimum capital requirement

Published

12 hours ago

March 7, 2026

Trends Admin

Olayemi Cardoso, Governor of the Central Bank of Nigeria

Recapitalisation: 30 Nigerian banks meet CBN minimum capital requirement

The Central Bank of Nigeria (CBN) has announced that 30 Nigerian banks have now met the new minimum capital requirements introduced as part of the banking sector recapitalisation programme launched in March 2024.

In a statement issued on Friday, Hakama Sidi Ali, Acting Director of Corporate Communications at the apex bank, said a total of 33 banks have successfully raised additional capital through rights issues, initial public offerings (IPOs), and private placements since the policy was introduced.

According to the CBN, the recapitalisation programme is aimed at strengthening the resilience, stability, and long-term capacity of Nigeria’s banking system to support economic growth and development.

“The Central Bank of Nigeria introduced a capitalisation programme for the banking sector in 2024 to strengthen the resilience, stability, and long-term capacity of the financial system to support Nigeria’s economic development,” the bank said.

“Since the introduction of the policy, banks across the industry have taken steps to strengthen their capital base in line with the revised regulatory requirements.

“As of March 6, 2026, the recapitalisation exercise is progressing steadily. Thirty banks have met the new minimum capital requirements applicable to their respective licence authorisations.

“In total, thirty-three banks have raised additional capital through rights issues, IPOs and private placements as part of the programme.”

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The apex bank said the capital positions of the remaining banks are currently undergoing routine regulatory verification before final confirmation of compliance within the stipulated timeline.

“The CBN reiterates that the Nigerian banking system remains stable and sound. The recapitalisation programme remains firmly on track and will further strengthen the capacity of the banking sector to support households, businesses, and sustainable economic growth,” the statement added.

The regulator also assured that it would continue to maintain close supervisory engagement with financial institutions to ensure full compliance with prudential and capital requirements.

Earlier, on February 24, Olayemi Cardoso, Governor of the Central Bank of Nigeria, disclosed that 20 banks had already met the minimum capital requirement, noting that the recapitalisation process was progressing steadily across the sector.

Cardoso also revealed that as of February 19, 2026, the total verified and approved capital raised by Nigerian banks had reached about ₦4 trillion, reflecting strong investor participation and confidence in the banking sector.

The recapitalisation programme follows the CBN’s March 28, 2024 directive reviewing the minimum capital base for commercial banks, with institutions given until March 31, 2026 to fully comply.

Under the revised framework, banks with international authorisation are required to have a minimum capital base of ₦500 billion, while national banks must raise ₦200 billion and regional banks ₦50 billion.

Financial analysts say the policy is designed to create stronger and better-capitalised banks capable of financing large-scale investments, supporting businesses, and improving financial stability in Africa’s largest economy.

The recapitalisation exercise has also triggered increased activity in Nigeria’s capital market, with several lenders launching public offers, rights issues, and strategic fundraising programmes to meet the regulatory thresholds.

Industry experts believe the ongoing exercise could lead to further consolidation in the banking sector, including potential mergers and acquisitions among smaller institutions struggling to meet the capital requirements before the deadline.

Recapitalisation: 30 Nigerian banks meet CBN minimum capital requirement

Business

Dangote Refinery Hikes Petrol Price to ₦995 per Litre Amid Global Oil Price Surge

Published

16 hours ago

March 7, 2026

Trends Admin

Dangote Refinery Hikes Petrol Price to ₦995 per Litre Amid Global Oil Price Surge

The Dangote Petroleum Refinery has raised its Premium Motor Spirit (PMS) gantry price to ₦995 per litre, marking a sharp increase of ₦221 in just four days amid rising global crude oil prices and shipping costs. The move signals further upward pressure on fuel prices nationwide, with retail petrol likely to surpass ₦1,050 per litre in many parts of Nigeria.

A senior refinery official confirmed the revision, stating that the price adjustment reflects recent fluctuations in international oil markets, crude oil replacement costs, and logistics expenses. The official said, “Yes, the price has been reviewed. The new gantry price is now ₦995 per litre.”

This hike follows an earlier increase this week when the refinery raised its ex-depot price from ₦774 to ₦874 per litre, meaning the cost of petrol from Dangote Refinery has risen nearly 29 per cent within four days. Updated pricing data on petroleumprice.ng confirmed the new benchmark for Nigeria’s downstream petroleum sector.

The refinery temporarily halted truck-out operations early Friday, a move often preceding price adjustments, leaving marketers uncertain about future costs. Industry sources noted that this pause in loading activities indicated a likely price increase, which has now been confirmed.

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Refinery officials emphasised that petrol prices in Nigeria’s fully deregulated market are influenced by global crude oil prices, foreign exchange rates, and supply chain costs, and are not set arbitrarily. They added that the facility has absorbed about 20 per cent of rising costs to reduce the impact on the domestic market.

The development comes amid geopolitical tensions, particularly the US-Iran conflict, which has pushed Brent crude prices above $84 per barrel, fueling additional cost pressures. Dangote Petroleum stated that it will prioritise domestic supply to help insulate Nigerians from global supply shocks.

Data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that imported petrol remains cheaper than locally refined fuel, with landing costs at ₦809.37 per litre, compared to Dangote’s gantry price. Diesel prices reflect a similar trend, with Dangote diesel at ₦1,169.42 per litre versus ₦1,125.70 per litre for imports.

The latest price hike is expected to push retail petrol prices higher, further straining household budgets and increasing transport costs across the country. Consumers and businesses alike are bracing for a surge in energy costs as the ripple effects of the gantry price increase reach filling stations nationwide.