Dangote Refinery shields Nigerians from global fuel price shock – S&P

…competitive pricing protects consumers from import driven increasesBy Udeme AkpanDangote Petroleum Refinery & Petrochemicals continues to shield the Nigerian market from external price shocks, maintaining stable domestic fuel prices within a commercially acceptable range despite rising international gasoline prices, higher freight rates and tightening global supply conditions that are increasing costs for fuel importers across West Africa, according to the latest market intelligence from S&P Global Commodity Insights.

With international product prices rising, freight costs increasing and regional trading hubs such as Lomé recording gasoline prices above those offered by Dangote Refinery, Nigeria’s dependence on imported fuel would likely have translated into significantly higher domestic pump prices had the refinery not been operating at scale.

According to the latest market intelligence published by S&P Global Commodity Insights, importers supplying the Nigerian market are becoming increasingly concerned over the sharp rise in international gasoline prices, with traders attributing the pressure to higher global product values and rising shipping costs.