Dangote Refinery to Prioritize Domestic Market Amidst Iran Crisis

Dangote Petroleum Refinery plans to prioritize domestic supply due to the US, Israel, and Iran conflict, increasing fuel prices in Nigeria. They raised petrol ex-depot prices by 13% but absorbed some costs. They supply over two-thirds of Nigeria's gasoline needs and face crude supply challenges.

In response to the escalating conflict involving the US, Israel, and Iran, Nigeria's Dangote Petroleum Refinery has announced an intention to focus on supplying fuel to its domestic market. The refinery's decision comes as fuel prices in Nigeria witness a sharp rise.

Due to increased crude and freight costs, Dangote has raised its ex-depot price of petrol by approximately 13%, though it has absorbed a portion of this hike to minimize the impact on local consumers. Despite the price hike, Nigeria's pump prices have surged from $0.63 to $0.74 per liter.

The refinery has also ramped up its gasoline supply to exceed two-thirds of Nigeria's daily needs, and it receives regular crude shipments from the state oil company NNPC. This strategic move is critical as fuel costs significantly influence transport and food expenses, impacting the country's inflation rates.