March 05, (THEWILL) — Dangote Petroleum Refinery & Petrochemicals has reiterated its unwavering commitment to ensuring an uninterrupted fuel supply and national energy stability, even as global crude prices surge and international market volatility intensifies.
In statements released on Thursday, the refinery highlighted challenges caused by upstream producers in Nigeria failing to supply crude oil as required under the Petroleum Industry Act (PIA), forcing it to source significant volumes from international traders at premium costs.
“Selling below cost would undermine our ability to procure crude, sustain production, and guarantee uninterrupted supply to Nigerians”, the refinery noted.
As a private enterprise operating in a deregulated environment, Dangote Refinery has made significant sacrifices to align pricing with market realities while ensuring sustainability.
The refinery emphasised that its operations at this scale reduce Nigeria’s exposure to international supply disruptions, moderate foreign exchange demand, and protect the country from shortages during periods of global instability.
To further strengthen supply chain resilience, Dangote Refinery is accelerating the deployment of Compressed Natural Gas (CNG)-powered trucks. The move is expected to enhance nationwide distribution efficiency, reduce logistics costs, and improve delivery timelines across the downstream sector, with rollout scheduled to begin this month.
The refinery also addressed the impact of recent global developments, including the conflict in the Middle East, which has led to refinery shutdowns worldwide and a sharp rise in crude and freight costs. In response, Dangote Refinery implemented a ₦100 per litre adjustment in the ex-depot price of Premium Motor Spirit, representing an approximate 12% increase, while absorbing 20% of the cost escalation to cushion the domestic market.
Management further explained that Nigerian crude oil is currently more expensive than the Brent benchmark by $3–$6 per barrel, with freight adding another $3.50 per barrel. The refinery continues to prioritise domestic supply despite these challenges, sourcing crude from both local and international markets to ensure Nigerians remain insulated from global supply shocks.
“Our commitment remains focused on transparency, operational excellence, and the long-term objective of securing sustainable energy security and stability for Nigeria at an affordable cost”, the refinery emphasised.
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