Demand pressure on Dangote Refinery has intensified sharply as petrol prices climbed to N1,245 per litre, driven by supply disruptions linked to the ongoing US-Israel-Iran conflict.
The surge in demand pressure for Dangote, alongside the latest petrol price jump to N1,245, reflects the growing strain on Africa’s fuel supply chain as countries scramble for alternatives to Middle Eastern imports.
Industry sources have revealed that several African countries, including South Africa, Ghana and Kenya, have approached the refinery in a bid to secure fuel supplies following disruptions in the Middle East, a region that accounts for a significant share of Africa’s refined fuel imports.
“Right now it is not about pricing, it’s about availability,” Aliko Dangote said in a recent interview, pointing to tightening supply conditions.
“I think the situation will continue for a while.”
The refinery, with a capacity of 650,000 barrels per day, is said to have committed about 75 per cent of its output to the domestic market, leaving limited volumes for export despite surging demand across the continent.
Analysts say the pressure highlights Africa’s deep dependence on imported refined products, particularly in East and Southern regions where supply shocks from the Middle East have immediate ripple effects.
“In Africa, the strain may be most acute in the east and southern parts of the continent,” an energy analyst noted, citing the region’s reliance on external supply chains.
The ongoing conflict has pushed global crude prices upward, with petrol prices in Nigeria already reacting to the shock, rising significantly in recent weeks as supply tightens.
Across the continent, governments and businesses are already adjusting to the crisis. Ethiopia has moved to ration fuel by prioritising public transport, while prices in parts of East Africa have surged sharply.
In South Africa, authorities acknowledged that existing reserves may only cover the “coming weeks,” prompting urgent efforts to diversify supply sources and avoid shortages.
Industry observers also note that the pressure is also reshaping corporate operations, with companies adopting contingency measures to cushion against supply disruptions and rising costs.
Meanwhile, Dangote Refinery confirmed the latest upward review in petrol pricing, citing the escalating geopolitical situation.
“Please be informed that due to the current global geo-political situation which has further escalated, the PMS gantry & coastal price has been reviewed and updated,” the company said.
“The refinery raised its coastal price from N1,512,648 per metric tonne to N1,606,518 per metric tonne, while the gantry price increased from N1,175 per litre to N1,245 per litre.
“Please note that the revised price will apply to all unloaded gantry and coastal volumes and is effective from 12:00 a.m. on the 21st of March 2026″, the company added.
Dangote Petroleum Refinery has raised fuel prices four times in March.
Earlier this month, PMS was raised from about N774 to N875, N995, N1,175, and now N1,245 per litre.
