Concerns over a potential rise in petrol prices have resurfaced as Dangote Petroleum Refinery cautioned that pump prices could climb as high as N1,400 per litre if Nigeria becomes fully dependent on fuel imports.
The refinery issued the warning on Monday while strongly refuting reports that it was planning to shut down operations for maintenance. It described the claims as false and misleading, alleging that they were being circulated to justify recent increases in petrol pump prices.
According to the company, large-scale domestic refining has become a key stabilising factor in Nigeria’s downstream petroleum market, particularly in a post-subsidy environment. It argued that without local refining capacity, fuel importers would have unchecked influence over prices.
“Recent price movements further highlight an uncomfortable reality,” the refinery said. “In the absence of the Dangote Petroleum Refinery, fuel importers would continue to operate without restraint, with petrol prices potentially escalating to levels estimated at up to N1,400 per litre.”
Dangote refinery alleged that the shutdown reports were deliberately promoted by fuel importers whose commercial interests were threatened by domestic refining. It said the misinformation was aimed at exploiting consumers and creating justification for higher pump prices.
“The false report in question is a deliberate fabrication promoted by fuel importers whose commercial interests are threatened by the stabilising impact of large-scale domestic refining,” the statement said, adding that such actions were against the national interest and imposed unnecessary hardship on Nigerians.
The company maintained that its operations remain stable and uninterrupted, noting that it currently has the capacity to supply between 40 million and 50 million litres of Premium Motor Spirit (PMS) daily, depending on market demand. It disclosed that on January 4, the refinery produced 50 million litres of PMS and evacuated 48 million litres through its gantry.
It also said current stock levels were sufficient to meet more than 20 days of national consumption, effectively dismissing concerns about supply shortages.
Addressing the issue of maintenance, the refinery explained that routine work on specific processing units does not affect overall output due to the integrated design of its facilities. It added that other critical units remained fully operational and continued to produce PMS, Automotive Gas Oil (diesel), and Jet A-1 for the domestic market.
Dangote refinery further stated that since mid-December, it has maintained steady PMS supply to the Nigerian market, with daily loading volumes ranging between 31 million and 48 million litres. These figures, it said, are verifiable through depot loading records maintained by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The company also reaffirmed its ex-gantry price of N699 per litre for petrol, stressing that the rate is available to all marketers and bulk consumers without discrimination.
It urged filling station operators, institutional consumers, and large-scale users to patronise locally refined products, arguing that domestic sourcing would help moderate pump prices, conserve foreign exchange, and support economic recovery.
“By sourcing PMS locally at N699 per litre, marketers are better positioned to pass on price relief to consumers, enhance market stability, conserve foreign exchange, and support Nigeria’s broader energy security objectives,” the refinery said.
Reiterating its stance, Dangote Petroleum Refinery said it would continue to prioritise steady supply and national energy security, while advising the public to disregard unverified reports and remain vigilant against price manipulation.