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Dangote Refinery says regulatory fees add to petrol pump price
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Company urges government to prioritise crude supply for local refiners
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Refinery says Nigeria exports crude but buys it back at higher prices
The Dangote Petroleum Refinery has said that costs incurred from 47 government agencies contribute to the rising pump price of petrol in Nigeria.
The Managing Director of the refinery, David Bird, disclosed this during a press conference in Lagos, noting that multiple regulatory charges across the petroleum value chain increase the final cost of fuel.
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Bird said agencies such as the Nigerian Ports Authority and the Nigerian Maritime Administration and Safety Agency impose various regulatory fees that ultimately affect the price of petrol for consumers.
He also criticised the current crude oil allocation system, stating that Nigeria’s domestic refining industry is treated as a “customer of last resort” while premium crude grades are prioritised for international buyers.
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According to him, the refinery often submits requests for crude oil grades such as Bonny Light and Escravos, but these are frequently sold to foreign traders before being resold back to local refiners at higher prices.
Bird called on the Nigerian National Petroleum Company Limited to prioritise crude supply to local refineries under the crude-for-naira programme to reduce costs and strengthen domestic refining capacity.
He stressed that many countries currently prioritise their local industries amid global energy volatility and urged Nigeria to adopt a similar approach to protect its domestic refining sector and ensure energy security.
The refinery’s comments come amid rising fuel prices following the escalation of tensions between Iran and the United States, which has disrupted global oil markets and led to the closure of the Strait of Hormuz.
