Dangote Refinery Cancels June Maintenance After Emergency Repairs, Ends Petrol Rebate
The Dangote Petroleum Refinery has called off its planned June maintenance for its key gasoline unit, after successfully completing essential repairs during an unexpected month-long shutdown. Originally scheduled to carry out maintenance on the 204,000 barrels-per-day residue fluid catalytic cracking unit, the refinery managed to address the necessary work between April 7 and May 11, making the planned maintenance redundant. This strategic decision signals a quick turnaround for the 650,000 barrels-per-day facility as it pushes to stabilize operations and maintain supply.
Industry reports from Reuters and Industrial Info Resources reveal that while the unplanned outage was in progress, the refinery increased the export of residual products like straight-run fuel oil. However, exports of finished fuels such as jet fuel and gasoil saw a dip. At the same time, Nigeria’s reliance on petrol imports surged in April, with a 24% increase, reaching about 157,000 barrels per day—equivalent to over 210 million litres. The refinery’s interrupted operations may have contributed to the import spike during that period.
Having kicked off crude refining in January 2024 and gasoline production by September of that year, Dangote’s $19 billion facility in Lagos continues to reshape the domestic fuel landscape. Its rapid response to equipment issues suggests growing operational maturity. Despite not issuing an official comment on the maintenance cancellation, the refinery seems focused on optimizing its output and adjusting market strategies to maintain a competitive edge.
In a related move, Dangote Refinery is ending its N10 per litre petrol rebate to customers, which had served as a temporary pricing cushion. This rebate was applied post-loading and allowed marketers to slightly undercut competing importers. The deadline for benefiting from the rebate is May 15, after which the official ex-depot price will return to N835 per litre. Multiple sources confirmed this update, though no formal statement has been released by the company.
Earlier reports indicated that the refinery had quietly reduced its effective price to N825 through the rebate scheme. This allowed downstream marketers to sell at N830–N835 per litre, helping Dangote outprice both private depot owners and fuel importers. As the rebate ends, the market may see a shift in pricing dynamics, especially for retailers who had been benefiting from Dangote’s strategic price adjustments. The move marks another step in the refinery’s evolving approach to market penetration and price leadership in Nigeria’s downstream sector.
Source: Punch