By Our Correspondent
The Dangote Petroleum Refinery has defended the recent increase in petrol prices, explaining that the adjustment was necessary due to rising global crude oil prices and growing geopolitical tensions affecting the international energy market. The company stated that the decision was influenced by external economic pressures that have significantly raised the cost of refining and distributing petroleum products.
According to the refinery, global crude oil prices have experienced a sharp increase in recent weeks, largely driven by instability in major oil-producing regions and disruptions in international supply chains. Since crude oil is the main raw material used in producing petrol, any rise in its global price directly increases the cost of refining. As a result, the refinery said the price adjustment was required to maintain sustainable operations and ensure a steady supply of fuel.
Despite the increase, the company maintained that local refining capacity will help reduce Nigeria’s exposure to global supply shocks. In the past, the country relied heavily on imported refined petroleum products, which made it vulnerable to international shipping disruptions, foreign exchange fluctuations, and sudden global fuel shortages. With the operation of the Dangote refinery, a large share of Nigeria’s petrol demand can now be supplied locally.
The refinery also explained that it made efforts to limit the impact of the price adjustment on consumers. According to the company, part of the rising production costs was absorbed internally rather than being fully transferred to the market. It said this step reflects its commitment to supporting energy stability and reducing the burden on Nigerians during periods of global market volatility.
Energy analysts believe that expanding local refining capacity could play a major role in stabilizing Nigeria’s petroleum sector in the long term. By reducing dependence on fuel imports and strengthening domestic production, Nigeria may gradually build a more resilient energy system that can better withstand fluctuations in the global oil market.
