Dangote Petroleum Refinery & Petrochemicals has reassured Nigerians of its commitment to stabilising domestic fuel supply following disruptions in the global petroleum market triggered by escalating tensions in the Middle East.
The refinery said the ongoing conflict has forced the shutdown of several refineries and reduced refining output in parts of the world, creating a looming shortage of petroleum products globally. It added that the situation has been compounded by China’s decision to halt exports of gasoline and diesel.
In a statement, the refinery noted that it would prioritise the Nigerian market in order to shield the country from potential supply shocks, highlighting domestic refining as a key buffer against international volatility.
The company disclosed that the geopolitical crisis has pushed global crude and freight costs significantly higher, with benchmark prices of Brent crude oil rising by about 26 per cent within a short period to over $84 per barrel.
In response to the rising costs, the refinery announced a N100 per litre increase in its ex-depot price of Premium Motor Spirit (PMS), representing an adjustment of about 12 per cent. However, it said it had absorbed about 20 per cent of the cost increase in a bid to cushion the impact on the domestic market.
According to the company, Nigerian crude currently sells at a premium of between $3 and $6 above Brent prices. With an additional freight cost of about $3.50 per barrel, the refinery said crude oil is landing at its facility at between $88 and $91 per barrel, compared with about $68 per barrel when the ex-depot price was N774 per litre.
The refinery also explained that it receives approximately five crude cargoes monthly from Nigerian National Petroleum Company Limited (NNPC), which are paid for in naira but still priced at international market rates plus premium.
However, the refinery requires about 13 cargoes monthly to meet domestic demand, forcing it to source additional supplies through international traders using foreign exchange.
It further noted that crude supply from local upstream producers has remained insufficient despite provisions of the Petroleum Industry Act (PIA) requiring domestic supply to local refineries, compelling the company to procure a significant portion of its feedstock from international markets at higher premiums.
Dangote Refinery said that as a private enterprise operating in a deregulated environment, it has continued to align its pricing with market realities to maintain operational sustainability.
Despite the prevailing challenges, the refinery maintained that large-scale domestic refining would help reduce Nigeria’s exposure to global supply disruptions, lower foreign exchange demand and prevent severe fuel shortages during periods of international instability.
Meanwhile, the company revealed plans to deploy trucks powered by Compressed Natural Gas (CNG) to improve distribution efficiency nationwide.
The rollout of the CNG-powered logistics fleet is expected to begin this month and is aimed at reducing transportation costs and improving delivery timelines across the downstream sector.
The refinery reaffirmed its commitment to transparency, operational excellence and the long-term goal of ensuring sustainable energy security and stable fuel supply for Nigeria.
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