Dangote Petroleum Refinery & Petrochemicals has reassured Nigerians of its commitment to maintaining stability in the country’s energy supply amid recent shocks in the international oil market.

The refinery said the conflict in the Middle East has led to the shutdown of some refineries and a reduction in production globally, contributing to a shortage of petroleum products. It also noted that China has banned the export of gasoline and diesel, further tightening supply.

The company stated that it would prioritise the domestic market to shield Nigeria from the disruptions. “The Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the many benefits of domestic refining.”

According to the refinery, the conflict has pushed up global crude and freight prices, with benchmark Brent crude rising by about 26 per cent within a short period to above $84 per barrel. In response, the refinery said it made a “measured adjustment” of N100 per litre in its ex-depot price of Premium Motor Spirit (PMS), representing about a 12 per cent increase.

It added that the refinery had absorbed part of the rising cost. “The refinery has absorbed 20% of the cost escalation, for now, to cushion the domestic market,” the statement said, noting that crude is still sourced at international market prices whether purchased locally or from foreign suppliers.

The company explained that Nigerian crude oil currently sells above the Brent benchmark by between $3 and $6 per barrel. With freight costs of about $3.50 per barrel, it said crude oil lands at its facility at between $88 and $91 per barrel.

“For context, crude oil was landing our tanks at about $68 per barrel when our ex-depot price was N774/litre,” the refinery stated.

It also said that although it receives about five crude cargoes monthly from the Nigerian National Petroleum Company (NNPC), which are paid for in naira, the volumes fall short of the 13 cargoes required to meet local demand. As a result, it has to source additional crude from international traders using foreign exchange at open market rates.

The refinery further said the situation has been worsened by limited supply from Nigerian upstream producers as required under the Petroleum Industry Act (PIA), forcing it to purchase crude through international traders who charge extra premiums.

“As a private enterprise operating in a deregulated environment, Dangote Petroleum Refinery has remained responsive and has made significant sacrifices by aligning pricing with market realities to ensure sustainability,” the company said.

It added that selling fuel below cost would affect its ability to buy crude, sustain production and guarantee uninterrupted supply.

Despite the challenges, the refinery said local refining at its scale helps reduce exposure to global supply disruptions, lowers pressure on foreign exchange and protects the country from shortages during periods of international instability.

The company also disclosed plans to introduce Compressed Natural Gas-powered trucks to improve distribution across the country, reduce logistics costs and improve delivery timelines. The rollout, it said, is scheduled to begin this month.

“We remain committed to transparency, operational excellence and the long-term objective of securing sustainable energy security and stability for Nigeria at an affordable cost.”

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