Dangote Refinery Spent $4.48bn Importing 40.4 Million Barrels of Crude in Two Months

The Dangote Petroleum Refinery imported 40.4 million barrels of crude oil between May and June 2026, spending approximately $4.48 billion to secure feedstock for its operations.

According to figures released by the refinery, 21.47 million barrels were imported in May at a total landed cost of $2.68 billion, while 18.93 million barrels arrived in June, costing $1.80 billion.

The refinery said the average landed cost of crude dropped significantly from $124.80 per barrel in May to $95.25 per barrel in June, representing a decline of nearly 24 percent. The reduction was attributed to softer global crude prices, improved freight conditions, and changes in the mix of crude grades purchased.

Crude supplies were sourced from a variety of producers, including Nigerian grades such as Bonny Light, Qua Iboe, Forcados, Amenam, Escravos, Agbami, and Utapate, as well as international grades including El Sharara, Cabinda, CJ Blend, Jubilee, Payara, and ABO.

The refinery explained that fuel prices do not immediately reflect changes in international crude oil prices because crude is purchased weeks or months before processing under long-term commercial contracts based on monthly average pricing rather than daily spot prices.

It added that the petroleum products currently being sold were produced from inventories acquired when crude prices were much higher than current global benchmarks, which are around $71 per barrel.

Despite the higher procurement costs, the company said it absorbed part of the additional expenses instead of passing the full burden to consumers, helping to stabilize Nigeria's fuel market, ease inflationary pressures, and reduce dependence on imported petroleum products.

Dangote Refinery also expressed optimism that fuel prices could decline further as lower-cost crude inventories begin entering its refining cycle, provided international market conditions remain favorable. The company said it remains committed to strengthening Nigeria's energy security by supplying high-quality petroleum products at competitive prices.

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