Dangote refinery

Dangote refinery has reaffirmed its capacity to supply fuel volumes significantly more than Nigeria's estimated domestic consumption, which is expected to reduce Nigeria's reliance on imports and strengthen its energy security. However, it also increased its petrol gantry price, leading to higher pump prices at MRS filling stations and other outlets.

Dangote refinery has warned that reliance on coastal logistics could increase petrol prices to nearly N1,000 per litre, impacting consumer welfare and economic stability. The company advocates for gantry loading and pipeline infrastructure to reduce costs and improve distribution efficiency. It also dismissed claims of importing finished products, stating it only imports intermediate feedstock.

Dangote refinery has reached its full designed capacity of 650,000 barrels of crude oil per day, a historic milestone. This achievement strengthens its position as Africa's largest oil refining facility and is expected to transform Nigeria's energy landscape, eliminate import dependence, and position the nation as a net exporter of petroleum products. The refinery also plans to expand its capacity to 1.4 million bpd.

Dangote refinery is preparing for a public share offering, allowing Nigerians to invest directly. This move is expected to democratize ownership, deepen Nigeria's capital market, and boost liquidity. The refinery is also expanding into petrochemical production, such as linear alkylbenzene.

Dangote refinery has increased its ex-depot price for Premium Motor Spirit by N100 per litre due to rising crude oil and freight costs. The company is prioritizing domestic supply to Nigeria to mitigate global supply shocks, absorbing 20% of the cost increase to cushion consumers. It faces challenges in securing adequate crude from Nigerian upstream producers, forcing it to procure additional crude from international traders at open market rates.