A senior official of the Dangote Petroleum Refinery says the refinery is effectively subsidising petrol and diesel in the Nigerian market to cushion the impact of rising global crude oil prices.
Diesel, Aviation fuel dynamics Industry dispute over pricing The official, who spoke on Monday on condition of anonymity, said the refinery’s N1,200 per litre ex-depot price for petrol remains below prevailing market rates despite a sharp increase in crude oil prices triggered by geopolitical tensions.
According to the source, crude oil prices surged significantly following tensions involving Iran and the United States, including disruptions around the Strait of Hormuz.
Brent crude reportedly rose from $66 per barrel on 28 February to over $100, driving up production costs across petroleum products.
“As crude prices moved up steeply, we tried to optimise the price of PMS (petrol) as much as possible to help the public,” the official said.
When asked if “optimisation” implied subsidy, the source answered in the affirmative.
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