Nigeria - Boubacar Sani

A senior management official at the Dangote Group revealed that the Dangote refinery in Nigeria Petroleum is providing partial support for gasoline and diesel prices destined for the Nigerian market, amid pressures in the global energy market.

We sell gasoline below market price to support consumers.

The official, who spoke to Zoom Africa News on condition of anonymity because he did not have official authorization, explained that the refinery supply price of gasoline at 1,200 naira per liter is lower than the competitive market price, especially given the sharp rise in crude oil prices following the US-Iran war.

According to The Punch, the war in the Middle East has led to turmoil in global energy markets, after Iran closed the Strait of Hormuz, causing Brent crude to rise from $66 a barrel on February 28 to more than $100.

As a result, Dangote refinery raised the price of gasoline delivery from 774 naira to 1,200 naira per liter, while diesel and jet fuel (Jet A-1) prices were affected by the same increases in crude prices.

In the aviation sector, operators are facing significant challenges, with some planning to suspend operations after jet fuel prices surged by more than 3,501 TP3T. Data indicates that the Dangote refinery supplies more than 901 TP3T of Nigeria's jet fuel needs.

The vice president of the Nigerian Airlines Operators Association, Allen Onyema, revealed that jet fuel prices have risen from about 900 naira per liter before the crisis to between 2,700 and 2,900 naira, while at some suppliers they have reached 3,500 naira per liter.

For his part, an official at the refinery confirmed that the company is seeking to "improve" gasoline and diesel prices to ease the burden on citizens, noting that jet fuel is sold at market prices without subsidies.

He explained that the high cost of crude oil was the main reason for the price increase, adding: «With the sharp rise in crude prices, we are trying as much as possible to improve gasoline prices (PMS) to support the public, and to some extent diesel (AGO), but we cannot support all products, so we sell jet fuel at the market price.».

Another source in the group also confirmed that the selling price of jet fuel is currently around 1,799 naira per liter, less than 2,000 naira, noting that it was even lower previously.

In contrast, the Nigerian Association of Major Energy Distributors reported that the price of jet fuel at the refinery is about 1,732 naira per liter, compared to its import cost of 1,835 naira.

This comes at a time when the market is under increasing pressure, amid warnings from airlines of a possible halt to operations due to the sharp rise in fuel costs, which puts the sector in front of unprecedented operational challenges.