Key Points
• Arewa civil society groups commend Dangote Refinery for maintaining petrol prices below import parity.
• Dangote’s gantry price of ₦1,265 is about ₦45.64 below the cited import parity price.
• Coalition urges stronger crude supply to local refineries and lower retail prices for consumers.
Main Story
The Coalition of Arewa Civil Society Groups has commended Dangote Refinery for moderating petrol prices amid pressures in the international oil market.
The coalition’s coordinator, Jabir Maiturare, gave the commendation in a statement on Wednesday in Kaduna, describing increased domestic refining as important to Nigeria’s energy security.
Maiturare said geopolitical tensions, disruptions to refining capacity and fluctuations in international crude prices had continued to put pressure on petroleum markets.
He said the situation underscored the importance of having large scale domestic refining capacity capable of supplying the Nigerian market and reducing exposure to external market shocks.
The coalition cited industry data showing Dangote Refinery’s petrol gantry price at ₦1,265 per litre, compared with an import parity benchmark of about ₦1,310.64.
It said the difference of approximately ₦45.64 per litre gave locally refined petrol a price advantage over imported products.
According to Maiturare, domestic refining can also reduce exposure to international shipping costs, foreign exchange pressures and other expenses associated with importing finished petroleum products.
The coalition described Dangote Refinery as an increasingly important part of Nigeria’s energy security framework, noting that the facility has a capacity of about 700,000 barrels per day and plans to expand to 1.4 million barrels per day.
It said the planned expansion could strengthen Nigeria’s position as a refining and petroleum products hub.
The Issues
Nigeria’s reliance on imported petroleum products exposes the downstream market to international crude prices, shipping costs and foreign exchange movements.
The coalition said stronger domestic refining capacity could reduce some of these external pressures. However, it also stressed the need to ensure that lower refinery and wholesale prices translate into benefits for consumers at the retail level.
It therefore urged petroleum marketers to reflect reductions at the refinery and wholesale stages in their pump prices.
What’s Being Said
“Against this backdrop, the coalition recognised the strategic importance of having a large scale domestic refinery capable of supplying the Nigerian market.” – Jabir Maiturare
“At a time when many countries remain vulnerable to international petroleum market shocks, strengthening Nigeria’s domestic refining capacity is an important step toward energy independence.” – Jabir Maiturare
What’s Next
The coalition called on government agencies, oil marketers, organised labour, civil society organisations and consumers to support policies that encourage domestic refining.
It also urged stakeholders to improve crude supply to Nigerian refineries and promote greater competition in the downstream petroleum market.
The group called on Dangote Refinery to maintain transparency and responsible pricing while continuing to support domestic energy security.
Bottom Line
The Coalition of Arewa Civil Society Groups says Dangote Refinery’s cited petrol price of ₦1,265 per litre is about ₦45.64 below import parity, describing the difference as evidence of the value of domestic refining. It wants lower refinery prices to translate into cheaper petrol for consumers.
