Dangote Refinery Announces Major Petrol Supply Capacity and Price Adjustments
The Dangote Petroleum Refinery has made a significant announcement regarding its production capabilities and pricing structure, revealing details that could reshape Nigeria's fuel market landscape. In an official statement released on Thursday, January 29, the refinery management confirmed its ability to supply up to 75 million litres of Premium Motor Spirit (petrol) daily to the Nigerian market.
Surpassing National Consumption Figures
This declared production capacity represents a substantial surplus when compared to Nigeria's estimated daily petrol consumption of approximately 50 million litres. The refinery's management emphasized that this excess capacity creates important market buffers that enhance stability throughout the petroleum distribution chain.
According to the company's statement: "We can supply 75 million litres of PMS (petrol) per day, compared with Nigeria's estimated consumption of 50 million litres per day; 25 million litres of AGO (diesel) per day, against an estimated demand of 14 million litres; and 20 million litres of jet fuel per day, far exceeding the estimated maximum domestic consumption of 4 million litres."
Beyond Petrol: Comprehensive Fuel Production
The refinery's capabilities extend well beyond petrol production. The facility can also produce 25 million litres of diesel daily, significantly above the estimated national demand of 14 million litres. Additionally, the refinery can supply 20 million litres of aviation fuel each day, dramatically exceeding the domestic consumption estimate of just 4 million litres.
Company officials highlighted that maintaining production volumes above prevailing demand provides critical advantages for market stability. This surplus capacity reduces the necessity for emergency fuel imports and supports continuous supply during periods of peak demand or logistical challenges.
Regulatory Compliance and Market Strategy
Dangote Refinery reaffirmed its commitment to full regulatory compliance and ongoing cooperation with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The company stated that its supply strategy aligns with broader efforts to ensure market stability and orderly downstream operations throughout Nigeria's petroleum sector.
"We reaffirm our commitment to full regulatory compliance, continued cooperation with regulatory authorities, in support of market stability and national energy security objectives," the statement emphasized.
Price Adjustments and Market Impact
The capacity announcement comes shortly after the refinery implemented price adjustments for its petroleum products. Dangote has increased its petrol gantry price to N799 per litre, up from the previous N699 per litre. This new pricing represents approximately N70 above the estimated landing cost of imported petrol.
Following this adjustment, Dangote directed MRS filling stations to sell petrol at N839 per litre. Market checks indicate that this price change has triggered further increases across various retail outlets, with numerous filling stations raising pump prices from around N739 per litre to N839 or higher.
Broader Market Context
These developments occur within a broader context of price adjustments across Nigeria's petroleum sector. The Nigerian National Petroleum Company Limited (NNPCL) retail outlets have also adjusted pump prices nationwide, with recent surveys showing NNPC stations in Lagos dispensing fuel at N840 per litre.
Current price reviews indicate that Gombe State records the highest pump prices among NNPC outlets across the country. These coordinated price movements reflect the interconnected nature of Nigeria's fuel distribution network and the influence of major producers like Dangote Refinery on market dynamics.
Strategic Implications for Nigeria's Energy Sector
The refinery's expanded production capacity and pricing strategy carry significant implications for Nigeria's energy security and economic stability. By maintaining production volumes well above domestic consumption levels, Dangote Refinery positions itself as a crucial buffer against supply disruptions and market volatility.
This development represents a milestone in Nigeria's journey toward greater fuel self-sufficiency and reduced dependence on imported petroleum products. As the refinery continues to ramp up operations and refine its market approach, industry observers will closely monitor its impact on pricing, availability, and overall energy security across the nation.
