By Our Correspondent
Oil marketers in Nigeria have expressed optimism that the operations of the Dangote Petroleum Refinery could help stabilize the country’s fuel supply, even as concerns grow over the rising price of petrol. According to industry stakeholders, a petrol price of about ₦1,500 per litre, though high, would still be more manageable for the economy than a prolonged period of fuel scarcity.
In recent years, Nigeria has struggled with recurring fuel shortages largely due to its heavy reliance on imported refined petroleum products. When supply disruptions occur, filling stations often run dry, forcing motorists and businesses to queue for hours or even days in search of fuel. In such situations, petrol is frequently sold on the black market at significantly higher prices, worsening the burden on consumers and businesses.
Oil marketers believe the operations of the Dangote Petroleum Refinery could play a critical role in reducing these supply disruptions. The refinery, built by Nigerian industrialist Aliko Dangote, is the largest in Africa with the capacity to refine about 650,000 barrels of crude oil per day. Once fully operational, it is expected to supply a significant portion of Nigeria’s petrol demand and reduce the country’s dependence on imported fuel.
Despite these expectations, industry experts caution that local refining alone may not automatically lead to cheaper petrol. Fuel prices are influenced by several factors, including global crude oil prices, exchange rates, transportation costs, and government policies. Following the removal of fuel subsidies by the administration of Bola Ahmed Tinubu in 2023, petrol prices have largely been determined by market forces.
For many Nigerians, however, the key concern remains affordability. Rising fuel prices often translate into higher transportation costs, increased food prices, and a general rise in the cost of living. While marketers emphasize the importance of ensuring steady fuel availability, citizens continue to hope that increased local refining capacity will eventually lead to more stable and affordable energy prices in the long run.
