According to a report by S&P Global Commodity Insights, the Dangote Petroleum Refinery has helped shield Nigeria from global fuel price shocks by maintaining stable domestic petrol prices despite rising international gasoline prices, higher freight rates, and tighter supply conditions.
The 650,000 barrels-per-day refinery, which began operations in 2024, has reduced Nigeria's dependence on imported refined products. S&P Global noted that the refinery's output has contributed to lower landing costs for petrol in Nigeria, allowing marketers to keep pump prices relatively steady even as global benchmarks fluctuated.
Industry analysts cited by S&P Global said the refinery's impact has been particularly notable in recent months, as geopolitical tensions and refinery outages elsewhere pushed up global gasoline prices. The Dangote refinery's ability to process locally produced crude oil has also helped mitigate the impact of currency volatility on fuel costs.
