The Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, David Bird, has assured Nigerians that the refinery will continue to meet the country’s fuel demand despite volatility in the global oil market.
Speaking during a media briefing, Bird said Nigeria’s growing domestic refining capacity has strengthened fuel supply security, helping the country avoid shortages and long queues even when international markets face disruptions.
He explained that under the crude for naira arrangement, crude oil supplied to the refinery is still purchased at international benchmark prices, noting that the refinery does not receive crude at discounted rates.
Bird added that countries heavily dependent on imported petroleum products are the most vulnerable during periods of global oil market instability, as they are exposed to price spikes and supply disruptions.
According to him, crude oil prices recently surged from the mid sixty dollar range to nearly 120 dollars per barrel within a week, reflecting heightened market volatility.
He also noted that the refinery operates under the same international commodity market conditions affecting the global industry, including fluctuations in crude prices, freight costs, insurance charges, and financing expenses.
Bird disclosed that tanker transportation costs have risen sharply from about 800,000 dollars to around 3.5 million dollars per shipment amid the current market conditions.
He further stated that the refinery is operating at its full nameplate capacity of about 650,000 barrels per day and has the potential to increase production to roughly 700,000 barrels per day to further support Nigeria’s fuel supply.
Source: X | DangoteGroup
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