The Dangote Petroleum Refinery has offered its clearest explanation yet of why domestic fuel prices do not immediately fall when global crude oil prices decline, revealing it spent $4.48 billion importing crude over the past two months under supply contracts signed well before current market prices took effect.
According to data released by the refinery, it imported 40.40 million barrels of crude oil between May and June 2026, arguing that petroleum products reaching the market today are being refined from inventories purchased at significantly higher prices than prevailing international benchmarks.
The disclosure comes amid growing public scrutiny over domestic fuel pricing as international crude prices have retreated sharply in recent weeks. The refinery said comparisons between daily Brent crude prices and local petrol prices overlook how refineries actually procure feedstock.
“It is important to clarify that refinery pricing does not move in tandem with daily international crude oil quotations,” the company said, explaining that crude purchases are typically made weeks or, in some cases, months in advance under contracts linked to monthly average prices rather than spot market rates.
