Why Petrol Prices Will Stay High – Dangote
In Nigeria, the Dangote Refinery says petrol prices will remain high due to global market pressures despite local refining efforts.
The refinery’s management explained that operations are fully tied to international cost trends.
The refinery’s Managing Director, David Bird, said factors like crude oil prices, shipping, and insurance are all influenced by global events, especially tensions in the Middle East.
These costs directly affect how petrol is priced at the pump.
He noted that the refinery does not operate with subsidies, meaning it cannot shield Nigerians from price swings.
Even when crude prices drop slightly, other costs in the supply chain may keep fuel prices high.
The company also raised concerns about crude oil supply within Nigeria, saying it does not always get enough or the preferred grades locally.
This forces it to import crude at higher prices, adding extra pressure on production costs.
According to the refinery, these challenges, combined with strong global demand for crude, make it difficult to reduce petrol prices in the short term.
Officials say broader reforms and better supply systems could help ease costs over time.
