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.
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.
Diesel, Aviation fuel dynamics
The official added that while the refinery has moderated petrol and diesel prices, it cannot extend the same approach to aviation fuel.
“We try to optimise diesel too… but we can’t be subsidising everything, so jet fuel is sold at market price,” the source stated.
Another company official disclosed that aviation fuel (Jet A-1) is sold to marketers at below N2,000 per litre, with a current price of about N1,799.
The development comes as airlines face mounting cost pressures, with fuel prices reportedly rising by over 300 percent since late February.
The Vice President of the Airline Operators of Nigeria, Allen Onyema, recently said prices jumped from about N900 per litre to between N2,700 and N2,900, with some marketers selling as high as N3,500.
Airlines have warned that the situation is becoming unsustainable, raising the possibility of operational shutdowns.
Industry dispute over pricing
In a letter dated 14 April 2026, AON President Abdulmunaf Sarina described the increase as “astronomical and artificial,” urging marketers to align prices with global benchmarks.
However, the Major Energies Marketers Association of Nigeria attributed the spike to global market disruptions and denied selling at excessively high rates.
MEMAN said its internal survey showed lower average prices and advised airlines to seek alternative suppliers if offered inflated rates.
Despite the back-and-forth, fuel costs have remained elevated since mid-April, with airlines continuing to express concerns over sustainability.
The Dangote refinery, valued at about $20 billion, currently supplies over 90 percent of Nigeria’s aviation fuel needs, making its pricing decisions central to the sector.
The situation underscores the vulnerability of Nigeria’s energy and aviation sectors to global oil price shocks, even as local refining capacity expands.
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