Amid rising tensions in the Middle East and disruptions in the global oil market, Dangote Petroleum Refinery and Petrochemicals has reassured Nigerians of its commitment to stabilizing the domestic fuel supply.
The ongoing conflict has forced several refineries worldwide to shut down or reduce production, prompting shortages of petroleum products.
In response, China recently banned exports of gasoline and diesel.
Dangote Refinery said it is prioritizing domestic supply, highlighting one of the key advantages of having a local refining capacity.
“We are ensuring Nigeria is insulated from international supply shocks,” the refinery stated, emphasizing that domestic refining allows the country to reduce dependency on foreign markets during crises.
Global crude and freight prices have surged sharply, with Brent benchmark prices rising about 26 percent in a short period, surpassing $84 per barrel.
In response, the refinery adjusted the ex-depot price of Premium Motor Spirit (PMS) by N100 per litre, an increase of roughly 12 percent. It also absorbed 20 percent of the cost escalation to cushion consumers. “This is despite continuing to source crude at prevailing international prices, whether purchased locally or from foreign suppliers,” the company said.
The refinery noted that Nigerian crude is currently more expensive than the Brent benchmark by $3 to $6 per barrel. After factoring in freight costs of $3.50 per barrel, crude oil now lands at the refinery between $88 and $91 per barrel, compared to $68 per barrel when the ex-depot price was N774/litre.
Dangote Refinery also highlighted challenges in crude supply from local producers. While it receives about five cargoes per month from the Nigerian National Petroleum Corporation (NNPC), this falls short of the 13 cargoes required to meet domestic demand. “We are therefore forced to procure a substantial portion from international traders, who charge an additional premium,” the company said.
Operating in a deregulated environment as a private enterprise, the refinery said it has made significant sacrifices to align pricing with market realities, ensuring uninterrupted supply to Nigerians. Selling below cost, the company explained, would undermine its ability to procure crude, sustain production, and maintain distribution.
To further cushion the impact of global supply shocks, Dangote Refinery is accelerating the deployment of Compressed Natural Gas (CNG)-powered trucks to improve nationwide distribution, reduce logistics costs, and enhance delivery timelines. The rollout is set to begin this month.
“The refinery remains committed to transparency, operational excellence, and the long-term objective of securing sustainable energy security for Nigeria at an affordable cost,” the statement concluded, underscoring its role as a stabilizing force for the country’s fuel market amid global uncertainty.
US-Iran Conflict: Dangote Refinery Moves to Shield Nigerians from Supply Shocks
