• Dangote Refinery pauses fuel loading to adjust rising gantry prices
• Pump prices jump to about 1,100 naira per litre

The US-Israel conflict with Iran has sent global oil prices surging, prompting Nigeria's Dangote Refinery to act swiftly to secure the country's fuel supply. Brent crude reached $120 a barrel on Monday, March 9, which immediately drove up costs for local refiners.

In response, the company temporarily suspended fuel loading operations for retailers. As CEO David Bird explained, "There is a gantry price movement, so we have paused loadings as of midnight, and we’re updating the system to the new gantry price as a result of oil spiking $30 in the last 24 hours."

The pause allowed the refinery to recalculate its prices while maintaining steady supply to the market. Pump prices were adjusted three times within a single week, climbing from 774 naira per litre to 874, then to 995, and finally to approximately 1,100 naira after the latest adjustment. Despite the repeated increases, the refinery absorbed roughly 20% of the overall price surge to limit the impact on the domestic market.

"As a domestic refining industry that secures its crude on international benchmarks, we are not immune from those price movements, those commodity movements," Bird acknowledged. "With the support of the Nigerian government and NNPC, albeit at internationally benchmark prices, we will continue to process that oil and serve the domestic market requirements."

The rapid response was driven by a set of compounding pressures. Dangote Refinery has been receiving fewer crude cargo shipments than required to fully meet domestic demand, and some local deliveries have failed to arrive, forcing the refinery to source supplies on international markets at significantly higher prices. Despite these constraints, it has kept both production and distribution running, preventing the global price spike from causing local shortages, an outcome seen in a number of other countries.

By revising prices three times in a matter of days, Dangote ensured that petrol stations across the country could continue operating without disruption. Bird described the approach as a demonstration of what domestic refining capacity can deliver. He said the refinery's priority was to protect the domestic market and ensure a stable fuel supply even during periods of global volatility.

The refinery's strategy underscores the central role a local player can play in a nation's energy resilience, balancing rising costs, supply security, and consumer protection at the same time.

Olivier de Souza