Dangote Refinery absorbs 20% of crude cost surge to stabilise fuel prices
Dangote Petroleum Refinery says it is currently absorbing about 20 percent of the recent crude oil cost escalation in order to reduce the impact of rising global prices on Nigerian fuel consumers. The company explained that the conflict in the Middle East and disruptions to global refining capacity have driven Brent crude prices up by roughly 26 percent, while Nigerian crude now trades at a premium of 3 to 6 dollars above the benchmark, with freight adding about 3.50 dollars per barrel. In response, the refinery implemented a 100 naira per litre increase in its ex depot price of petrol, representing about a 12 percent adjustment, but stressed that this is lower than the full rise in crude and logistics costs because it has chosen to absorb part of the escalation. Dangote Refinery said it receives around five cargoes of […]
