Nigeria's privately owned 650,000 b/d Dangote refinery has raised its gasoline gantry price for the third time this month.
Global crude, oil product and freight prices have risen sharply since the Iran war began 10 days ago, increasing cost pressure on refiners. Dangote said it is "fully exposed to international commodity markets — including crude oil prices, freight rates, insurance and financing costs".
Gasoline from the refinery rose by 18pc to 1,175 naira/litre on 9 March from N995/l, according to market participants, following 13pc and 14pc increases on 2 and 6 March. Benchmark non-oxy gasoline barge values hit $915.25/t on 9 March, up by 9pc on the previous trading day and their highest since 30 April 2024.
Refinery chief executive David Bird said domestic refining in Nigeria helps prevent fuel shortages "even when global markets are disrupted". Nigeria's gasoline stocks averaged 30.8 days cover in February, down from 32.9 days in January, according to regulator NMDPRA. Bird added that the recent extreme crude price volatility and surging freight costs had added further pressure, noting that the government's domestic crude supply programme — which lets Dangote pay in naira but uses international pricing — offers no discount.
An industry source told Argus that Dangote received 2.6mn bl of Nigerian Okono, Bonny and Amenam crude between 1–4 March, alongside 2.1mn bl of US WTI imported on 2 March. The refinery took a total of 12.9mn bl of crude across 13 cargoes in February, two-thirds domestic grades and the rest WTI, the source said.
Dangote's run rate averaged 545,000 b/d between 1–8 March, producing 321,000 b/d of gasoline — up from 247,000 b/d in February, the source said. Dangote said on 9 March that it "operates at its full nameplate capacity of about 650,000 b/d, with potential to increase production to around 700,000 b/d".
Gasoline supply from Dangote averaged 225,000 b/d in the first eight days of March, slightly lower than February's 230,000 b/d, the source said. The refinery supplied 92pc of Nigeria's gasoline last month, up from 62pc in January.
Nigeria has sharply restricted gasoline import permits this year. No imports have landed so far in March, and February's only cargo required regulatory approval for delayed delivery under an import permit issued in the final quarter of last year, the source said.
Market participants told Argus that Vitol, BP and Mocoh have all positioned gasoline cargoes that meet Nigerian specifications offshore west Africa, anticipating a possible easing of import restrictions. Dangote, which has long opposed imports, said it will "continue to meet Nigeria's fuel demand despite global supply disruptions and market volatility". Five marketers were being considered for import permits, one source said.
Dangote said last month that it signed a gasoline distribution agreement with 12 major petroleum marketers. The marketers' preference for coastal loadings lifted the seaborne share of Dangote's gasoline deliveries from 22pc in February to 40pc in the first eight days of March, the source said.
