Dangote Refinery assures fuel supply stability amid global oil turmoil
Dangote
Abdullateef Fowewe
The Managing Director/CEO of Dangote Petroleum Refinery, David Bird, has emphasised the facility’s pivotal role in shielding Nigeria from fuel shortages, even as global oil markets spiral into chaos.
Bird in a press conference highlighted that the refinery will continue meeting Nigeria’s fuel demand despite widespread supply disruptions and market volatility.
“Domestic refining gives Nigeria supply security,” he said, ensuring the country avoids the long fuel queues that plague import-dependent nations.
“Even under the crude-for-naira arrangement, Nigerian crude is purchased at international benchmark prices – we do not receive discounted crude,” Bird clarified, underscoring the refinery’s full exposure to global commodity markets, including crude oil prices, freight rates, insurance, and financing costs.
The executive pointed to escalating global challenges, noting that import-reliant countries are worst hit as the oil crisis intensifies.
Crude prices have rocketed from the mid-$60 range to nearly $120 per barrel within a single week, while freight costs have surged dramatically – tanker shipments now cost roughly $3.5 million, up from about $800,000.
He noted that yet, Dangote Refinery remains a beacon of reliability, operating at its full nameplate capacity of about 650,000 barrels per day, with potential to ramp up to around 700,000 barrels per day.
