The Dangote Petroleum Refinery has forcefully dismissed widespread rumours of a shutdown, revealing instead a massive delivery of over 43 million litres of Premium Motor Spirit (PMS), commonly known as petrol, to the Nigerian market in a single day. This move comes as a direct rebuttal to claims that the facility had halted operations for maintenance.
Refinery Operates at Full Capacity, Counters False Narratives
Officials from the $20 billion refinery have categorically denied the shutdown reports, labelling them as false and misleading. A senior official challenged the narrative, stating emphatically that operations are running at full capacity. "Have we stopped loading or turned back a single truck that came to load?" the official questioned. "Yesterday alone, we loaded 43.30 million litres of petrol."
This volume, loaded on Saturday, January 3rd, 2026, is reported to be sufficient to meet more than half of Nigeria's estimated daily petrol consumption. Another source within the refinery assured the public that the plant currently holds enough petrol in storage to supply the nation for over 20 days, mitigating any immediate risk of fuel scarcity.
Private Depots Hike Prices Despite Dangote's N699 Rate
Despite the refinery's firm stance and continued supply, a significant price disparity has emerged in the market. While Dangote Refinery maintains its selling price at N699 per litre, several private depots have sharply increased their ex-depot prices.
Data from petroleumprice.ng showed hikes to between N780 and N805 per litre within days of the false shutdown rumours. Specific increases include:
- Eterna and Integrated depots: Prices rose to N800 per litre from N726.
- Aiteo and Lister: Sold within the N780 range.
- Warri depots: Prices climbed as high as N805 per litre.
Refinery officials have questioned the justification for these increases, suggesting that some traders are exploiting the false claims to manipulate and drive up prices artificially.
Price War and Strategic Losses to Protect Local Refining
The current market tension follows a major price cut by the Dangote refinery in December 2025, when it slashed its petrol gantry price from N828 to N699 per litre—a reduction of N129. This move sent shockwaves through the downstream sector, forcing many marketers and depot owners to sell below their cost price.
The Group President, Aliko Dangote, acknowledged that the refinery itself is incurring significant losses estimated at about N91 billion monthly as a result of the price reduction. However, he defended the strategy as necessary for the long-term health of the Nigerian economy. "I would rather lose money than allow petrol imports to continue dominating the market," Dangote stated, underscoring a commitment to stabilising fuel prices and protecting local refining capacity.
Analysts believe the refinery's sustained high output will continue to exert downward pressure on depot prices, limiting the ability of importers to push through further increases. The refinery has also introduced initiatives like a 10-day credit facility for dealers to ease distribution pressures.
The situation highlights the ongoing transformation within Nigeria's energy sector, as the Dangote Refinery's growing output challenges old market dynamics and price structures, aiming for greater stability and self-sufficiency.
