News

Is Petrol Really 40% Cheaper in Nigeria Than in Saudi Arabia? An Analysis of Dangote’s Claims

Published by Tope Fakinlede on September 28th, 2024.

Is Petrol Really 40% Cheaper in Nigeria Than in Saudi Arabia? An Analysis of Dangote’s Claims

On September 23, Aliko Dangote, the founder of Dangote Petroleum Refinery, stated that petrol prices in Nigeria are approximately 40% lower than in Saudi Arabia during an interview with Bloomberg TV.

Dangote addressed the ongoing subsidy issue in Nigeria, suggesting it’s time to discontinue government payments for fuel. He remarked, “In Saudi Arabia, citizens view oil as a God-given resource, which is why it has traditionally been sold at low prices. However, as of now, petrol is about 40% cheaper in Nigeria than in Saudi Arabia, which seems illogical.”

Verification of Claims

According to data from Saudi Aramco, the price for octane 95 petrol in Saudi Arabia is 2.33 riyals per litre, while octane 91 costs 2.18 riyals. The Central Bank of Saudi Arabia reported that 1 riyal is equivalent to approximately N438.5, meaning the price of octane 95 petrol converts to around N1,021.92 per litre, and octane 91 to about N956.14.

In contrast, the Nigerian National Petroleum Company (NNPC) recently raised petrol prices to N855 per litre as of September 3. After converting Saudi prices to naira, octane 95 is 17.78% more expensive in Saudi Arabia, and octane 91 is 11.16% pricier than in Nigeria.

When comparing prices in dollars, the findings show a similar pattern, indicating a much smaller price difference than the 40% claimed by Dangote.

Conclusion

Verdict: Partly false.

While it’s true that petrol prices are higher in Saudi Arabia, the assertion that prices in Nigeria are 40% cheaper is exaggerated. The actual difference is considerably less, based on current data.