A senior Dangote Group official has revealed that the Dangote Petroleum Refinery has been subsidising the petrol and diesel it sells to the Nigerian market, speaking to The Punch on condition of anonymity. The official said the company's N1,200 per litre ex-depot price for petrol is below competitive market price given crude price surges following the US-Iran war. However, the refinery cannot subsidise aviation fuel as well, so jet fuel is sold at market price. Another Dangote official disclosed that jet fuel is sold to marketers below N2,000 per litre.
Key Points
- Nigerian petrol consumers benefit from Dangote's subsidy, paying below market rates.
- Diesel users also receive subsidised pricing from the refinery amid global crude spikes.
- Airlines face the full market price for jet fuel, contributing to their shutdown threat.
- Marketers selling jet fuel at N3,300 per litre face questions about their profit margins.
- MEMAN's average market survey price for jet fuel is over N1,000 lower than what airlines report paying.
Watch whether the price disparity between Dangote's jet fuel price (below N2,000) and marketers' reported selling price (up to N3,300) is investigated by regulators.
Sources: The Punch
