Dangote Refinery's Output Trigger New Petrol Prices at Depots, Filling Stations
- Reports revealed that Dangote Petroleum Refinery crude purchases has reduced following operational setbacks
- Further maintenance shutdowns planned early next year could prolong supply disruptions
- The current challenges has led to new fuel prices across the country with NNPC sells at above N922 in Lagos
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery has reportedly reduced its crude oil purchases this month following operational setbacks.
The challenge has influence petrol prices across depots and filling stations nationwide.
Source: UGC
Dangote buys less petrol
According to tanker-tracking data and cargo allocation list the refinery is expected to buy fewer than 300,000 barrels of crude per day this month.
This is down more than 50% from a July peak of 600,000 barrels per day and less than half the plant’s full capacity.
Also, a Bloomberg report indicated that the production slowdown could persist into next year, potentially tightening supply and sustaining upward pressure on domestic fuel prices.
The report noted that Dangote’s crude intake is critical for determining Nigeria’s petrol supply.
“Nigeria’s huge Dangote oil refinery has been buying a lot less crude lately amid operational setbacks, something analysts say could persist into next year and keep supporting gasoline prices.
"Dangote is expected to purchase fewer than 300,000 barrels a day of crude this month, according to tanker-tracking data and cargo allocation lists.”
Analysts speak on challenges
Intelligence firm IIR Energy noted that Dangote’s gasoline unit may require further shutdowns early next year to complete major work.
Also, analysts, including FGE NexantECA, are sceptical the refinery can maintain high output in 2026.
Qilin Tam, head of refining at FGE NexantECA said:
“Unscheduled outages could add a bullish sentiment to the gasoline market, especially ahead of next summer’s driving season."
Punch reports that Dangote has not placed orders for West Texas Intermediate crude for November delivery, though spot market purchases remain possible depending on operational conditions.
Wood Mackenzie Ltd. expects run rates to recover once current issues are resolved, but further disruptions could continue to influence both local and regional fuel markets.
Source: Getty Images
New petrol prices at filling stations
Dangote refinery challenges have created a supply shortage, disrupting petrol prices in Nigeria.
Private depots are selling petrol between N880 and N900 per litre.
At the retail level, a visit to fuel stations showed that prices have risen from an average of N865 per litre to over N900 in Lagos.
NNPC now sells petrol for N922 per litre, up from N870.
Other marketers, including MRS, Ardova, Matrix, De Petroleum, Fatgbems, Petrocam, TotalEnergies, Pinnacle, and Mobil, are selling petrol at an average of N910 to N950 per litre.
Marketers share reason for petrol price agreement
Earlier, Legit.ng reported that Dangote Petroleum Refinery has slashed the ex-depot price of Automotive Gas Oil (AGO), also known as diesel, to N910 per litre.
The new price is a N50 drop when compared to N960 per litre sold previously, and this is expected to spark price competition.
The new diesel price was confirmed in a notice issued by the Refinery’s Group Commercial Operations to customers.
Source: Legit.ng
