Nigeria’s largest privately owned refinery, the Dangote Petroleum Refinery, has assured Nigerians that it will prioritise domestic supply of petroleum products to prevent fuel shortages, despite the ongoing crisis in the Middle East
In a statement released on Thursday, March 5, the company affirmed its commitment to maintaining stability in Nigeria’s energy market amid global supply disruptions caused by regional conflicts.
The refinery noted that the crisis has forced the shutdown of several refineries in different countries, reducing refining output and tightening the global supply of petroleum products. Additionally, international supply chains have been pressured further by China’s ban on gasoline and diesel exports.
“These developments have intensified global fuel market strain, pushing up prices and creating uncertainty worldwide,” the company said.
Despite these challenges, Dangote Refinery emphasized that Nigeria would be protected from potential shortages by giving precedence to local supply.
“This is one of the many advantages of domestic refining,” the company stated, noting that large-scale local refining reduces the country’s exposure to international supply shocks.
The refinery also highlighted that the conflict has caused crude oil and shipping costs to surge, with Brent Crude rising approximately 26% in recent weeks to over $84 per barrel.
In response, the refinery adjusted the ex-depot price of Premium Motor Spirit (PMS) by ₦100 per litre, a roughly 12% increase, while absorbing about 20% of the cost hike to minimise the impact on Nigerian consumers.
The company further explained that it continues to source crude oil at prevailing international prices, whether from local or foreign suppliers, with crude landing costs now reaching $91 per barrel.
Bush Radio