Aliko Dangote Finally Gives Reason for Importing US Crude Amid Hike in Petrol Prices

• The President of Dangote Industries Limited, Aliko Dangote, has explained the reason for his refinery’s increased dependence on US crude
• Dangote said that inadequate domestic supplies have led to imports, with the report saying that the plant imported 3.65m barrels of US crude in 2 months
• This is despite the Nigerian government’s commitment under the naira-for-crude policy aimed at easing FX pressures

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Dangote Refinery has attributed its sudden appetite for US crude to the domestic supply shortage.

Aliko Dangote, President of Dangote Industries, disclosed this during a visit by the Technical Committee of the One-Stop Shop (OSS) on the sale of crude and refined products in naira.

Dangote Refinery is expecting more US crude

Dangote explained that despite the naira-for-crude scheme significantly easing FX pressure and contributing to local price stability, continued domestic supply shortages were forcing the mega refinery to rely on crude from the US.

According to reports, the facility has imported about 3.65 million barrels of US crude between April and May 2025 and is expecting to receive an additional 14 million barrels by July, bringing its total planned imports to 17.65 million barrels in four months.

Data shows that a large share of the imports comprises the WTI grade, valued for its petrol-blending properties and low sulphur content.

According to experts, this grade offers superior reformate yields relative to some Nigerian grades.

Dangote Refinery receives 21 tankers

According to the report, more cargoes are scheduled to arrive, with US supplies surpassing local allocations despite the government’s commitment under the naira-for-crude initiative.

While Nigeria’s Petroleum Industry Act (PIA) mandates Domestic Crude Supply Obligations (DCSO), upstream operators, including international oil companies (IOCs), have always prioritised foreign buyers.

The move has left major refineries scrambling for feedstock, with reports estimating that from December 2024 to May 2025, Dangote Refinery reportedly received 46.2 million barrels of local crude, relative to over 27.1 million barrels from US markets.

Dangote hikes fuel prices

However, Dangote has reiterated his commitment to national development, stating the giant facility would continue to support price stability and economic growth.

Experts disclosed that the increasing volume of dollar-denominated imports could cause further challenges to Nigeria’s FX reserves, proving counterproductive to the project designed to reduce import reliance.

Meanwhile, the refinery announced further hikes of its ex-depot prices from N825 to N888 per litre, blaming it on the surging crude oil prices in the international markets.

Filling stations adjust pumps

Subsequently, the refinery’s partner stations, such as MRS, Heyden, AP, and others, have announced price hikes relative to the refinery’s price spike.

The price hike by the Refinery has caused a ripple effect in the Nigerian petroleum industry, with filling stations quickly adjusting their pumps in response.

It has become clear that the Nigerian downstream petroleum industry is increasingly dependent on Dangote for supplies, with refined product imports crashing drastically.

Fuel prices surge at depots nationwide

Legit.ng earlier reported that as of Saturday, June 21, 2025, fuel depot prices across Nigeria have surged, with petrol and diesel recording significant hikes in many locations.

A five-day review showed increased tension in the international crude oil market and rising transport costs.

The five-day review covers major petroleum product hubs across the Dangote Refinery and several other depots nationwide.

Source: Legit.ng