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Dangote refinery shifts Nigeria fuel pricing to US dollars

Dangote said it needs 13 to 15 crude cargoes per month but state NNPC supplied seven in May, leaving the refinery to buy the rest internationally.

Reported · Written up by our desk · Energy

Dangote Petroleum Refinery has begun pricing Nigeria’s domestic gasoline, diesel, and jet fuel in US dollars, citing difficulty securing enough Nigerian crude to run at full capacity, OilPrice reports.

The refinery, which can process 700,000 barrels of crude per day, said it is switching after struggling to obtain barrels through Nigeria’s naira-for-crude program. OilPrice reports gasoline is now $0.779 per liter, diesel is $1.087, and jet fuel is $0.942.

Dangote said it needs 13 to 15 crude cargoes each month, while state-owned NNPC supplied seven cargoes in May, up from about five previously. With the gap, the refinery has been purchasing additional crude on the international market where pricing is in dollars.

The shift underscores the tension in Nigeria’s fuel and crude supply, OilPrice said, as the country exports more than 1 million barrels of crude per day but still has its flagship refinery importing some of what it processes. OilPrice added that the refinery has already reduced gasoline imports as production ramped up, leaving crude as a scarce commodity and complicating the naira-for-crude program.

Latest closeWTI crude $78.04 ▲9.3%|Gasoline (RBOB) $2.974 ▼0.4%

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