Dangote Refinery Admits Selling Fuel Below Market Value, Urges End to Subsidy Regime

A senior figure within the Dangote Group has revealed that petrol and diesel produced at the refinery are currently being sold at prices lower than prevailing global benchmarks, effectively amounting to a subsidy.

According to the official, the company is shouldering the financial gap created by keeping ex-depot petrol prices beneath competitive market levels. He stressed that this approach is intended to cushion the impact of rising energy costs on Nigerians.

The refinery also pointed out that recent pricing adjustments were driven by fluctuations in international crude oil prices, warning that further changes may occur as global conditions evolve.

Despite the presence of local refining capacity, fuel pricing in Nigeria continues to be tied to global market forces. The company maintains that its pricing strategy is a temporary relief measure for consumers.

However, the official called on the Federal Government to fully eliminate fuel subsidies, arguing that a complete deregulation of the sector would promote transparency, reduce distortions, and ensure long-term stability in the downstream market.