• Dangote Refinery aims to stabilize Nigerian fuel prices amid global crude oil volatility and post-subsidy market reforms.

• The refinery supplied an average of 32 million liters of gasoline per day in December 2025, up from 23.52 million liters in November.

• Dangote has begun selling refined products directly to end users, bypassing traditional fuel distributors.

Fuel prices have become increasingly exposed to fluctuations driven by international crude oil prices and foreign exchange movements. As a result, policymakers and industry players have sought structural solutions to reduce volatility and improve domestic supply security.

Dangote Refinery said it wants to contribute to fuel price stability in Nigeria amid volatility in global crude oil markets.

David Bird, chief executive officer of Dangote Refinery, made the statement during a public appearance in Lagos, which local media reported on Thursday, Jan. 15.

“In terms of price stability, that is clearly the President’s objective, and as quickly as possible. In Australia, fuel prices at service stations can change three times a day. That is extremely volatile, and it is not justified,” Bird said.

“Our objective is therefore to introduce stability, and that stability must sit within the range of international benchmarks,” he added.

The company said it plans to rely on domestic fuel production to reduce exposure to international price fluctuations.

Dangote Refinery recently cut its wholesale fuel prices. At the same time, data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that the refinery supplied an average of 32 million liters of gasoline per day in December 2025, compared with 23.52 million liters per day in November.

These developments come as Nigeria’s fuel market continues to operate without government price subsidies introduced before 2023. Fuel prices now track global oil prices and currency movements.

Dangote Refinery, which has a processing capacity of 650,000 barrels per day, said local crude oil refining shortens the supply chain and improves price predictability.

Dangote Launches Direct Fuel Sales

This strategy follows several initiatives that Dangote Petroleum Refinery launched in recent months within Nigeria’s fuel market.

In June 2025, the group announced that it would begin selling refined petroleum products directly to filling stations, industrial users, and other large consumers in Nigeria without relying on traditional distribution intermediaries.

As reported by Ecofin Agency, the model allows the refinery to manage production, transportation, and delivery independently using a dedicated fleet of fuel tanker trucks.

At the time, the announcement triggered reactions across the downstream sector. Several independent fuel marketers raised concerns about the potential impact of this approach on existing distribution networks.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange Jason Quenum