A senior management official at the Dangote Group revealed on Monday that Dangote Petroleum Refinery has been subsidizing the petrol and diesel it supplies to the Nigerian market.
Speaking anonymously due to lack of authorisation, the official explained that Dangote’s ex-depot price for petrol—set at N1,200 per litre—is below prevailing market rates, especially after crude oil prices surged in the wake of the US-Iran conflict. The war led to the blockage of the Strait of Hormuz by Iran, pushing Brent crude from $66 per barrel on February 28 to over $100 per barrel.
As a result, Dangote increased its petrol gantry price from N774 to N1,200 per litre. The price hike also affected diesel and aviation fuel.
In the aviation sector, airlines are considering suspending operations following a more than 350% spike in Jet A-1 prices. Dangote supplies over 90% of Nigeria’s aviation fuel. Allen Onyema, Vice President of the Airline Operators of Nigeria (AON), recently disclosed that Jet A-1 prices have soared from about N900 per litre before the Iran crisis to between N2,700 and N2,900, with some marketers charging as much as N3,500.
The Dangote refinery official stated that, while the $20 billion plant has tried to keep petrol and diesel prices as low as possible, it cannot extend subsidies to aviation fuel. As a result, jet fuel is being sold at market price.
He attributed the rising fuel prices to the spike in crude oil costs, saying: “With crude prices increasing sharply, we try to optimize the prices of PMS (petrol) and AGO (diesel) to support the public. But we can’t subsidize everything, so jet fuel is sold at market price.” When asked if ‘optimizing’ meant subsidizing, he confirmed that it did.
Another Dangote Group official said the refinery sells aviation fuel to marketers for less than N2,000 per litre, confirming, As of this (Monday) morning, our jet fuel price is N1,799. It was even lower previously. That’s the price to marketers, who then sell to airlines. We’re selling at under N2,000 per litre.
Last week, the Major Energies Marketers Association of Nigeria (MEMAN) reported Dangote’s jet fuel gantry price at N1,732 per litre, while imported aviation fuel cost N1,835. However, fuel marketers have largely declined to disclose their selling prices to airlines.
Previously, in a letter dated April 14, 2026, to MEMAN’s Executive Secretary Clement Isong, AON President Abdulmunaf Sarina highlighted that Jet A-1 prices had risen from N900 per litre on February 28 to N3,300 per litre—a more than 300% increase. The letter described the spike as astronomical and artificial, noting it far outpaces the roughly 30% rise in crude prices. AON warned that airlines could no longer sustain operations at these rates and urged MEMAN to align jet fuel prices with international market realities.
MEMAN, in response, attributed high aviation fuel costs to global disruptions, especially those tied to Middle East tensions. The association expressed surprise at the N3,300 per litre figure cited by airlines, noting their internal survey found significantly lower prices. MEMAN clarified that while they could not disclose a single price due to competition laws, N3,300 per litre was more than N1,000 above their average market rate. They encouraged airlines to seek alternative suppliers if facing exorbitant prices.
Despite these exchanges, the situation remains unchanged since April 16, with airlines continuing to threaten shutdowns over soaring fuel costs.
