The Dangote Petroleum Refinery says it is concentrating on gasoline costs stability in Nigeria regardless of ongoing volatility in international crude oil markets, positioning home refining as a buffer in opposition to exterior worth shocks.
This was disclosed by the Managing Director and Chief Government Officer of Dangote Refinery, David Hen, throughout his formal unveiling in Lagos on Wednesday attended by Nairametrics.
The remarks come as Nigeria continues to regulate to a liberalised gasoline market closely influenced by worldwide crude oil benchmarks.
Hen mentioned the refinery’s pricing helps Nigeria’s aim of swift downstream worth stability.
What Hen is saying
Hen mentioned the refinery’s overarching aim is to not get rid of worth actions solely, however to stop excessive and unpredictable swings that usually characterise import-dependent markets.
“From worth stability, that’s positively the President’s goal as quickly as attainable,” Hen mentioned. “In Australia, the value at petroleum stations can change thrice a day. It’s extraordinarily unstable, and that’s not justified.”
He famous that whereas crude oil stays the first driver of gasoline worth volatility, Dangote Refinery is concentrated on holding worth modifications inside a predictable and manageable vary.
“Our goal is to drive worth stability inside a variety,” he mentioned. “Crude oil is the first driver of worth volatility, however we’re in a processing enterprise. You will note some volatility in diesel and gasoline costs, so we have to monitor that inside a variety.”
How home refining moderates worth shocks
In accordance with Hen, the refinery’s pricing technique is anchored on worldwide benchmarks however tailored to mirror home manufacturing realities.
This, he mentioned, permits the corporate to average worth shocks and stop sudden spikes that would place strain on customers and companies.
“So, our goal is to attract stability and it must be within the vary of the worldwide benchmarks,” he added.
He pointed to latest market developments as proof of the refinery’s stabilising position, noting that regardless of important fluctuations in international crude oil costs, Nigeria skilled relative worth calm, significantly in the course of the festive season.
“Have a look at the wild trip oil costs have had within the meantime. But, now we have sustained worth stability right here, significantly in the course of the festive season, all with our personal manufacturing,” Hen mentioned.
Hen additional defined that international locations closely reliant on gasoline imports are extra uncovered to worldwide worth volatility, international alternate pressures, and provide disruptions.
“If you’re totally import-dependent, then you’re totally uncovered to the fluctuations within the worldwide market,” he mentioned, including that home refining capability helps insulate Nigeria from these dangers.
Why this matter
Gasoline worth volatility has important implications for inflation, transportation prices, and general financial stability in Nigeria.
With petrol and diesel costs instantly affecting households and companies, excessive worth swings can shortly erode buying energy and improve working prices.
The Dangote Refinery’s scale and built-in operations cut back Nigeria’s reliance on gasoline imports, ease strain on international alternate demand, and improve vitality safety. Whereas gasoline costs should still reply to international crude oil actions, native refining is anticipated to dampen excessive volatility and supply customers with higher worth predictability over time.
What you must know
Nigeria totally liberalised its petrol market in 2023, making home gasoline costs extra delicate to international crude oil costs and alternate price actions.
The Dangote Refinery, with a capability of 650,000 barrels per day, is anticipated to considerably cut back gasoline imports and reshape Nigeria’s downstream petroleum sector.
Nairametrics had reported that David Hen was initially appointed as MD/CEO of Dangote Refinery in August 2025.
In October 2025, the Dangote Refinery introduced plans to increase its manufacturing capability from 650,000 barrels per day to 1.4 million barrels per day.
In November, Dangote Industries signed a serious settlement with Honeywell to supply superior refinery companies and expertise that can allow the enlargement of its refining capability.
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