Dangote Petroleum Refinery & Petrochemicals has reiterated its commitment to stabilising Nigeria’s energy supply as global oil markets face increasing volatility.
The company cited recent geopolitical tensions in the Middle East, which have disrupted refining capacity worldwide, leading to temporary shutdowns and reduced petroleum product output.
Further compounding the issue, China recently halted gasoline and diesel exports, intensifying global shortages.
Dangote Refinery confirmed it would prioritise Nigeria’s domestic market to shield consumers from the ripple effects of international supply shocks.
The conflict in the Middle East has driven crude oil and freight costs sharply higher.
Benchmark Brent crude prices reportedly jumped about 26 percent in a short period, surpassing $84 per barrel.
In response, the refinery increased its ex-depot price of Premium Motor Spirit (PMS) by N100 per litre, a roughly 12 percent adjustment.
The company, however, absorbed approximately 20 percent of the cost escalation to reduce the impact on domestic consumers.
According to the refinery, Nigerian crude oil currently trades between $3 and $6 per barrel above the Brent benchmark, with freight costs adding roughly $3.50 per barrel, bringing the landing price to between $88 and $91 per barrel.
By comparison, crude previously landed at around $68 per barrel when PMS cost N774 per litre at ex-depot.
Dangote Refinery receives around five crude cargoes per month from Nigerian National Petroleum Company Limited, paid for in naira, though production requires roughly 13 cargoes monthly.
As a result, the company must source additional crude internationally, purchasing foreign exchange at open market rates.
The refinery noted that upstream Nigerian producers have not consistently met supply obligations under the Petroleum Industry Act, forcing reliance on international traders and associated premiums.
The company emphasised that selling products below cost would jeopardise its ability to procure crude, maintain production, and ensure uninterrupted domestic supply.
Despite these challenges, Dangote Refinery highlighted that large-scale domestic refining continues to reduce Nigeria’s exposure to international disruptions, lower foreign exchange demand, and protect the country from severe shortages.
The company also announced plans to deploy Compressed Natural Gas (CNG)-powered trucks nationwide to improve fuel distribution, reduce logistics costs, and enhance delivery efficiency.
The rollout is expected to begin this month.
Dangote Refinery reaffirmed its commitment to transparency, operational excellence, and long-term energy security, assuring Nigerians of a continued focus on stabilising the country’s petroleum supply amid global market pressures.
