Dangote’s refinery is currently being flooded with inquiries as African governments scramble to secure fuel supplies after the Iran war disrupted flows.
Dangote Petroleum Refinery and Petrochemicals has been approached by South Africa and other governments in the region, as well as from countries outside the continent, a company executive said in a text message.
This is coming as the refinery announced an upward review of the price of petrol citing escalating global geopolitical tensions.
In a notice sent to marketers on Friday the refinery disclosed that its ex-depot (gantry) price had been raised from N1,175 per litre to N1,245 per litre, while the coastal price was also adjusted upward.
“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 as outlined below,” the notice read.
The document showed that the gantry price increased by N70 per litre, while the coastal price rose from N1,512,648 per metric tonne to N1,606,518 per metric tonne.
According to the refinery, the new pricing regime will take effect from midnight on March 21, 2026.
“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 12am on the 21st of March 2026,” it stated.
The refinery also clarified that marketers with existing supply arrangements backed by bank guarantees would still be allowed to lift products under previous approvals, subject to certain conditions.
“For customers with a valid Bank Guarantee with DPRP, loading will continue with existing ATCs/PRN (if any) provided the BG credit balance covers the price change differential,” the notice added.
It further explained that the cost difference arising from the new pricing would be recovered from marketers.
“The corresponding debit note will be passed in your trading account with DPRP. Payment evidence for the price change differential will be required by Monday, 23-March-2026,” the company said.
The latest adjustment is expected to ripple across the downstream sector, with pump prices likely to rise in the coming days as marketers pass on the increased cost to consumers.
The latest adjustment underscores the continued vulnerability of Nigeria’s fuel market to international crude oil price volatility and supply chain disruptions, despite the coming on stream of the Dangote refinery, which was expected to stabilise domestic supply.
The development comes amid heightened global uncertainty driven by ongoing tensions in key oil-producing regions, particularly in the Middle East, which has pushed up crude oil prices and freight costs.
The refinery, however, maintained that the adjustment was necessary to reflect prevailing market realities, stressing that the pricing review was driven by external factors beyond its control.
Meanwhile, South Africa is seeking a standard contract for 12 months with Nigeria, people with knowledge of the matter said, asking not to be identified as the discussions are private, reports Bloomberg.
From cooking gas shortages in India to dwindling naphtha supplies in Japan, the US-Israel war on Iran is exposing vulnerabilities across the global economy.
In Africa, the strain may be most acute in east and southern parts of the continent, where about 75 per cent of refined-fuel imports come from the Middle East, according to Elitsa Georgieva, executive director at energy consultancy CITAC.
South Africa “is actively coordinating with industry stakeholders to secure both crude oil and refined petroleum products from a diversified range of sources,” the government said in a statement on Wednesday. “A comprehensive plan is in place to manage potential supply risks.”
About 75 per cent of Dangote’s 650,000 barrel-a-day facility is reserved for Nigeria, with the remainder available for export. Ghana and Kenya have also reached out to Dangote, one of the people said.
“Right now it is not about pricing, it’s about availability,” Dangote said in an interview with the Economist. “I think the situation will continue for a while.”
South Africa said it had enough for the “coming weeks,” while Kenya requires oil marketing companies to keep three weeks of stock and officials said there’s no immediate concern over shortages.
As a benchmark, the International Energy Agency requires members to hold at least 90 days of net oil imports. No African country is a member of the global energy watchdog.
In Ethiopia, authorities ordered fuel stations to prioritize public-transport providers and asked citizens to use energy sparingly. Meanwhile, in the Somali capital fuel prices have almost doubled.
South Africa has about 8 million barrels of strategic crude oil stocks, according to the state-owned Central Energy Fund, but virtually no dedicated fuel reserves. Lawmakers last year found such stockpiles lacking.
Africa’s biggest economy has lost about half its refining capacity in recent years after accidents and years of underinvestment left plants unable to meet cleaner-fuel standards, increasing a reliance on imports.
Fuel marketers do hold some stocks as a distribution buffer, Jacob Mbele, director-general at South Africa’s Department of Mineral Resources, said in an interview Monday. The government has been looking into keeping its own strategic reserves since the country has become a net importer of oil products, but the process is at an early stage, he said.
For now, supplies remain stable, with availability of all major petroleum products nationwide, the Fuels Industry Association of South Africa, an industry lobby group, said in a statement on Friday.
Some businesses are taking measure to avoid shortages. That’s resulted in a surge in demand for coal. Exxaro Resources Ltd., biggest producer of the dirtiest fuel in South Africa, said prices have shot up about 20 per cent to $112 a ton, according to Chief Executive Officer Ben Magara.
At the same time, the miner faces higher freight and insurance prices to ship manganese, along with potential fuel supply issues across operations, he said.
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“Making sure we have enough fuel inventories for a crisis like this is also quite important,” Magara said. “So we are putting a lot of business continuity management plans in place because you just, you never know.”