Africa’s largest refinery, Dangote Petroleum, said it imported 40.40 million barrels of crude oil between May and June, which it attributed to the delay in reducing domestic fuel prices despite lower global oil prices.
The company said petroleum products currently reaching consumers are being refined from crude purchased weeks or months earlier under contracts based on monthly average prices.
It said comparing daily Brent crude prices with local petrol prices creates a misleading picture because refineries do not buy crude at spot market rates.
Refinery records showed 21.47 million barrels were imported in May for $2.68 billion, followed by 18.93 million barrels in June worth $1.80 billion.
The average landed cost fell from $124.80 per barrel in May to $95.25 in June, reflecting weaker crude prices, lower freight costs and changes in purchased grades.
Despite the decline, both monthly averages remained far above the current international benchmark of about $71 per barrel, leaving the refinery processing costlier inventories.
The refinery sourced crude from Nigeria, Libya, Angola and other producers, broadening procurement as its 650,000-barrel-per-day facility expands towards full-scale operations.
Industry traders also reported the refinery recently imported crude from the United Arab Emirates for the first time, signalling greater flexibility in securing supplies.
The company said it absorbed part of the higher procurement costs instead of fully passing them to consumers, aiming to ease inflationary pressure and support fuel price stability.
It added that domestic refining has strengthened Nigeria’s energy security by reducing reliance on imported petroleum products and easing pressure on foreign exchange reserves.
Looking ahead, the refinery said fuel prices could gradually decline as cheaper crude bought in recent weeks replaces older, higher-cost inventories, if global market conditions remain favourable.
