Dangote Refinery Assures Nigerians of Steady Fuel Supply Despite Global Oil Price Surge

Dangote Refinery Assures Nigerians of Steady Fuel Supply Despite Global Oil Price Surge

The Managing Director of  Dangote Petroleum Refinery, David Bird, has reassured Nigerians that the country will not experience fuel shortages despite disruptions in the global oil market and the sharp rise in crude oil prices.

Bird gave the assurance during a media interaction, noting that while many countries dependent on fuel imports are already experiencing panic buying and rationing, Nigeria now enjoys greater supply security due to its domestic refining capacity.

According to him, the refinery remains committed to ensuring uninterrupted supply of petrol across the country even as geopolitical tensions in the Middle East push global crude oil prices higher.

He explained that the global oil market has witnessed a dramatic surge in prices within a short period.

“Just a week ago, oil was trading in the mid-$60 range, and it has now climbed to nearly $120 per barrel,” Bird said, adding that the sudden spike has affected every segment of the global energy supply chain, including freight and insurance costs.

Bird noted that although the refinery is also exposed to fluctuations in crude oil prices and logistics costs like other players in the global refining industry, Nigeria now holds a significant advantage through local refining.

“What would be worse than $120 oil is no oil,” he said, pointing out that several countries are already implementing rationing due to heavy reliance on imported fuel.

He further disclosed that some nations with large refining capacities have begun restricting fuel exports in order to protect their domestic markets amid the ongoing global supply shock.

Bird emphasized that as long as the refinery continues to receive Nigerian crude through the Federal Government and the Nigerian National Petroleum Company Limited, it will sustain supply to the domestic market.

“With government support and steady access to domestic crude, Dangote Refinery will continue to meet all of Nigeria’s refined fuel requirements,” he assured.

The refinery, he revealed, is currently operating at its full nameplate capacity of about 650,000 barrels per day, making it one of the world’s largest single-train refineries.

At this level of production, the facility can produce between 50 million and 55 million litres of petrol daily, with the capacity to increase output through blending if required.

Nigeria’s daily petrol consumption is estimated at about 35 million litres, meaning the refinery has more than sufficient capacity to meet the nation’s demand.

Bird said the company is prioritising supply to the Nigerian market to ensure what he described as “fuel abundance.”

“We will ensure that Nigeria enjoys fuel abundance, not fuel scarcity,” he stated.

However, he cautioned that fuel pricing will still be influenced by global market conditions since crude oil used by the refinery is purchased at international benchmark prices, even under the crude-for-naira arrangement.

“Pricing is determined largely by global commodity markets,” Bird explained, adding that decisions on price interventions remain the responsibility of the government.

He also noted that the refinery, which began sustained operations in early 2024, has recorded improved operational performance following maintenance and optimisation activities carried out earlier this year.