Dangote Refinery Pays Fees to 47 Government Agencies, Says Petrol Price Impact Inevitable
- Dangote Refinery MD has said the refinery pays fees to about 47 government agencies, which contribute to the final pump price of petrol
- He said that domestic refineries are treated as customers of last resort and often forced to buy crude through international traders at higher prices
- He urged the government to prioritise local refineries with adequate crude supply, especially amid rising global oil market uncertainty
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Managing Director of Dangote Refinery, David Bird, has revealed that the refinery deals with about 47 government agencies whose various fees and regulatory charges contribute to the final pump price of petrol in Nigeria.
Speaking at a press conference in Lagos on Monday, March 9, 2026, Bird said these regulatory costs form part of the refinery’s operational expenses and eventually influence the price consumers pay at filling stations.
Source: UGC
It would be noted that the refinery has raised the ex-depot price of its petrol multiple times since the war in the Middle East began in late February 2026.
Dangote says regulatory charges add to petrol cost
Bird noted that several government institutions impose fees at different stages of the refinery’s operations, increasing the overall cost of refining and distributing petrol.
According to him, agencies such as the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), and other regulators each add charges that accumulate along the value chain.
He urged government institutions to review their roles in the supply chain and consider reducing regulatory costs to help lower fuel prices.
"We still feel there’s a lot of regulatory impost at every step of our processing, whether that’s regulator, whether it’s NPA, whether it’s NIMASA. We have 47 different government agencies that we deal with and we incur costs from."
Dangote Refinery seeks priority access to crude oil
The Dangote Refinery MD also called on the Federal Government to prioritise domestic refining by ensuring local refineries have adequate access to crude oil.
He explained that Nigeria’s refining industry should be treated as a priority buyer rather than a last option when crude oil allocations are made.
Bird said the refinery regularly submits a list of preferred crude grades, including Bonny Light and Escravos, but often receives limited allocations because international commitments are fulfilled first.
As a result, the refinery sometimes has to purchase crude through international traders who add their own margins before reselling the same oil back to local refiners.
Bird urged the government and the Nigerian National Petroleum Company (NNPC) to provide greater transparency in the crude allocation process and prioritise domestic refineries under the crude-for-naira programme.
Source: Getty Images
Meanwhile, the pump price of petrol in Nigeria has risen by more than N350 per litre following tensions between Iran and the United States, which resulted in the closure of the Strait of Hormuz and disrupted global oil supply routes.
PETROAN warns petrol price may reach N2,000
Meanwhile, Legit.ng earlier reported that the president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that petrol prices could approach N2,000 per litre if global supply disruptions persist.
Billy Gillis-Harris called on the NNPC Limited to repair the state-owned moribund refineries to help shield Nigeria from the impact of global petroleum market disruptions.
He stated that increasing local refining will reduce the country’s exposure to international oil price volatility and help stabilise fuel supply and prices.
Source: Legit.ng
