Aliko Dangote's refinery gears up to supply 310 million liters of petrol

As petrol prices climbed across Nigeria over the weekend, the Dangote Petroleum Refinery, owned by Africa’s richest man, Aliko Dangote, said it is ready to supply marketers with more than 310 million liters of petrol, urging them to bring their trucks for loading.

During a facility tour on Friday, Devakumar Edwin, vice president of the Dangote Group, told reporters that the refinery was operating at full capacity and capable of meeting both local and export demand.

“We have more than 310 million liters as of now,” Edwin said. “Bring your tankers. We will load. Any number you bring, we can handle.” He added that speculation about the refinery halting production was unfounded and might have prompted some marketers to raise prices unnecessarily.

Addressing supply and inventory concerns

Edwin explained that the refinery occasionally slows crude intake to manage working capital and inventory levels. When global oil prices dip, he said, the company tends to buy more crude, but it avoids holding excessive stock when prices are stable. 

“No refinery runs at 100 percent without issues,” he said. “Routine maintenance is normal. It doesn’t mean we’ve stopped production.” He noted that large refineries usually undergo turnaround maintenance every few years and emphasized that Dangote’s operations remain steady, with fuel production continuing daily. 

Edwin said the plant could meet Nigeria’s full domestic demand for petrol, diesel, and aviation fuel while still exporting about half of its total output. “This is a very large refinery—650,000 barrels per day—producing 94 percent lighter products such as petrol, diesel, and jet fuel,” he said. “Our production of lighter products exceeds Nigeria’s needs.”

Rising prices and consumer confusion

The refinery began operations earlier in 2024 with an output of 350,000 barrels per day, later ramping up to 650,000 barrels, with plans to reach 700,000 barrels by late 2025. A recent setback at the Dangote Petroleum Refinery caused a decline in crude intake raising questions about the stability of Nigeria's fuel supply.

The refinery’s assurance comes amid confusion over soaring pump prices, despite stable crude prices and a stronger naira. Brent crude, which traded above $80 a barrel earlier this year, now hovers near $60, while the naira now exchanges at about N1,470 ($1) to the dollar, down from N1,700 ($1.2) earlier in the year.

Despite these stabilizing factors, depot and filling station owners increased petrol prices, with the Nigerian National Petroleum Company Limited (NNPC) adjusting its retail price to N920 ($0.62) per liter. Dangote’s partners, MRS and Heyden, sold between N923 ($0.62) and N925 ($0.63) per liter. 

The refinery also slightly raised its gantry price to N870 ($0.59) from N820 ($0.56), citing higher costs. Edwin reaffirmed that Dangote Refinery remains operational and capable of meeting Nigeria’s entire fuel demand.