Petrol Would Have Reached N1,500 Without Dangote Refinery — Marketers
Oil marketers in Nigeria have said the price of petrol could have risen to about N1,500 per litre if the operations of the Dangote Refinery had not begun supplying fuel to the domestic market.
Industry stakeholders made the claim while discussing the impact of the refinery on Nigeria’s fuel supply and pricing in recent months.
According to marketers, the refinery’s entry into the petroleum supply chain has helped ease pressure on fuel availability and prevented prices from climbing significantly higher.
Nigeria has long relied heavily on imported refined petroleum products due to the limited capacity of its local refineries. This dependence on imports has made fuel prices vulnerable to global market fluctuations, exchange rate instability, and high transportation costs.
However, the commissioning of the massive Dangote Refinery, built by billionaire industrialist Aliko Dangote, is widely seen as a major step toward improving local refining capacity.
With a refining capacity of about 650,000 barrels per day, the facility is considered one of the largest single-train refineries in the world.
Marketers say the refinery has already begun influencing the domestic fuel market by increasing supply within the country and reducing the need for large volumes of imported petrol.
According to industry representatives, if Nigeria had continued to depend entirely on imported fuel, the cost of petrol could have surged to around N1,500 per litre due to rising global crude prices, shipping costs, and foreign exchange challenges.
The depreciation of the Nigerian currency has also been a major factor affecting fuel importation costs. Since refined petroleum products are typically purchased in foreign currency, a weaker local currency increases the final retail price.
Marketers say the Dangote Refinery helps mitigate some of these pressures by producing fuel locally, which reduces transportation costs and shortens supply chains.
Energy experts believe that increased domestic refining capacity could eventually stabilize fuel prices and reduce supply shortages that have historically affected the Nigerian market.
However, they also note that several factors still influence petrol prices, including crude oil prices in the international market, distribution costs, government policies, and exchange rate movements.
In recent years, Nigeria has undertaken reforms in the petroleum sector aimed at liberalizing the market and encouraging private investment in refining.
The government has also emphasized the importance of local refining as a way to strengthen energy security and reduce reliance on imports.
While the Dangote Refinery is expected to play a significant role in achieving these goals, analysts say the full impact may take time to materialize as production and distribution systems continue to expand.
Some marketers have called for additional investments in infrastructure such as pipelines, storage facilities, and transportation networks to ensure that refined products can reach all parts of the country efficiently.
Others argue that more private refineries should be encouraged in order to increase competition and further stabilize prices.
For many Nigerians, petrol prices remain a sensitive issue because fuel costs directly affect transportation, electricity generation, and the prices of goods and services.
As the Dangote Refinery continues to ramp up operations, industry stakeholders will be closely monitoring its influence on Nigeria’s energy sector and the broader economy.
Whether petrol prices remain stable or fluctuate in the coming months will likely depend on a combination of domestic production levels and global oil market conditions.
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