Dangote Refinery Helps Keep Nigeria’s Petrol Prices Among the Lowest Globally

Dangote Refinery Helps Keep Nigeria’s Petrol Prices Among the Lowest Globally

Nigeria continues to maintain one of the lowest petrol prices in the world despite recent global increases triggered by geopolitical tensions in the Middle East, with industry analysts attributing the relative stability largely to the impact of the Dangote Petroleum Refinery & Petrochemicals, which has helped cushion the domestic market and ensure steady fuel supply.

Industry data indicates that Nigeria’s petrol price remains significantly below the global average even as international markets experience volatility.

According to data from GlobalPetrolPrices.com, petrol in Nigeria currently sells at an average of $0.88 (N1,191.39) per litre, compared to the global average of $1.32 (N1,787.08) per litre, based on an exchange rate of N1,353.85 to the dollar.

The data also shows that petrol prices are considerably higher in several major economies. In the United States, petrol costs about $1.075 (N1,455.39) per litre, while India records $1.095 (N1,482.47). In South Africa, the pump price stands at $1.189 (N1,609.73) per litre.

Prices rise even further across advanced economies. In the United Kingdom, petrol sells for about $1.874 (N2,537.11) per litre, while motorists in France pay roughly $2.152 (N2,913.49). In Germany, the price reaches $2.343 (N3,172.07) per litre, while Hong Kong records some of the highest global prices at $3.967 (N5,370.72) per litre.

Within West Africa, Nigeria also compares favourably with neighbouring countries where petrol costs more. Prices average $1.192 (N1,613.79) in Togo, $1.218 (N1,648.99) in Benin, $1.240 (N1,678.77) in Ghana, and $1.478 (N2,000.99) in Cameroon.

Analysts say the growing operational capacity of the Dangote Petroleum Refinery & Petrochemicals has played a critical role in moderating domestic price volatility by supplying a large share of Nigeria’s petrol demand locally. This has helped absorb part of the global cost pressures while ensuring consistent availability of refined products.

The stabilising effect of local refining has become even more important as several countries continue to face supply disruptions, rationing and price spikes linked to escalating geopolitical tensions in the Middle East.

Another notable insight from the data is that very few countries globally sell petrol below $1 (N1,353.85) per litre without some form of government intervention.

According to GlobalPetrolPrices, most nations with pump prices under that threshold typically rely on fuel subsidies, price controls or regulated pricing mechanisms to shield consumers from international market fluctuations.

Nigeria, however, operates a fully deregulated downstream market following the removal of fuel subsidy in 2023, meaning domestic petrol prices are largely influenced by global crude oil prices and foreign exchange movements.

Despite this transition, the Dangote Petroleum Refinery & Petrochemicals has continued to act as a buffer for the Nigerian economy.

Although petrol prices in Nigeria have increased by about 35 to 40 per cent since the onset of the recent Middle East crisis, the rise remains lower than in several other markets. For instance, countries such as Cambodia and Vietnam have recorded increases of over 67 per cent and 49 per cent respectively.

Industry observers warn that without the scale and refining capacity provided by the Dangote Petroleum Refinery & Petrochemicals, Nigeria could have been more vulnerable to global supply shocks. Such shocks might have resulted in higher pump prices, increased pressure on foreign exchange reserves and possible fuel shortages.

Instead, the development of local refining capacity has strengthened supply security, moderated price increases and reinforced Nigeria’s position as one of the more stable fuel markets globally amid ongoing international uncertainty.