Dangote Refinery assures Nigerians of steady fuel supply despite global refinery shutdowns, rising crude prices and supply disruptions.
Dangote Petroleum Refinery & Petrochemicals has reaffirmed its commitment to stabilising Nigeria’s energy supply amid growing volatility in the international oil market.
The refinery said recent geopolitical tensions in the Middle East have disrupted global refining capacity, leading to the shutdown of some refineries and reduced petroleum product output worldwide.
According to the company, the situation has contributed to a growing global scarcity of refined petroleum products, further intensified by China’s decision to halt the export of gasoline and diesel.
Dangote Refinery said it would prioritise supply to Nigeria’s domestic market in order to shield the country from the impact of global supply shocks.
The refinery noted that the conflict in the Middle East has also pushed global crude oil and freight prices sharply higher.
Benchmark Brent crude prices have reportedly risen by about 26 percent within a short period to above $84 per barrel.
In response to the rising costs, the refinery implemented a ₦100 per litre adjustment in its ex-depot price of Premium Motor Spirit (PMS), representing an increase of about 12 percent.
Despite the adjustment, the company said it had absorbed about 20 percent of the cost escalation in order to cushion the impact on the domestic market.
The refinery explained that it continues to source crude oil at prevailing international market prices, whether purchased locally or from foreign suppliers.
It added that Nigerian crude oil is currently priced between $3 and $6 per barrel above the Brent benchmark, while freight costs add about $3.50 per barrel, raising the landing price of crude in its tanks to between $88 and $91 per barrel.
The company noted that crude previously landed at around $68 per barrel when its ex-depot price stood at ₦774 per litre.
Dangote Refinery also disclosed that it receives about five crude cargoes monthly from the Nigerian National Petroleum Company Limited (NNPC), paid for in naira, but requires approximately 13 cargoes to meet its production needs.
As a result, the refinery said it must source additional crude from international traders, requiring foreign exchange purchases at open market rates.
The company further stated that upstream producers in Nigeria have not consistently supplied crude as required under the Petroleum Industry Act, forcing it to procure a significant portion of its crude supply through international traders at additional premiums.
Dangote Refinery emphasised that selling products below cost would undermine its ability to procure crude, maintain production and ensure uninterrupted supply to Nigerians.
Despite the pressures, the refinery said large-scale domestic refining continues to reduce Nigeria’s exposure to international supply disruptions, moderate foreign exchange demand and protect the country from severe product shortages.
The company also revealed that it is accelerating the deployment of Compressed Natural Gas-powered trucks to improve nationwide fuel distribution, reduce logistics costs and enhance delivery efficiency.
According to the refinery, the rollout of the CNG-powered trucks is scheduled to begin this month.
Dangote Refinery reaffirmed its commitment to transparency, operational excellence and long-term energy security for Nigeria.