The Managing Director of Dangote Petroleum Refinery, David Bird, has reassured Nigerians that the refinery will continue to meet the country’s fuel needs despite ongoing disruptions in the global oil and gas market.
He said that while many fuel import-dependent countries are already experiencing panic buying and rationing, Nigeria will no longer face such challenges as the refinery is committed to ensuring the steady availability of petrol nationwide.
Speaking during a media chat, Bird stated that the refinery remains committed to supplying uninterrupted fuel to the Nigerian market, even as geopolitical tensions in the Middle East drive sharp increases in crude oil prices, freight rates, and insurance costs.
According to him, the global oil market has experienced an extraordinary surge 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,” he said, noting that the sudden spike has affected every segment of the global energy supply chain.
Bird explained that, like other players in the global refining industry, Dangote Petroleum Refinery is exposed to fluctuations in crude oil prices, freight charges, and insurance premiums. However, he stressed that Nigeria now enjoys a critical advantage—energy supply security made possible by domestic refining capacity.
“What would be worse than $120 oil is no oil,” he said, pointing out that some countries are already implementing fuel rationing because they rely entirely on imports.
He added that several nations with significant refining capacity have begun restricting fuel exports to protect local supply amid the ongoing global supply shock.
Bird emphasised 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.
He disclosed that the refinery 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.
The facility can produce between 50 million and 55 million litres of petrol daily, with the capacity to increase output through blending if necessary.
Nigeria’s daily petrol consumption is estimated at about 35 million litres, Bird noted, emphasising that the refinery has more than enough capacity to meet national demand.
He added that the refinery is prioritising supply to the Nigerian market to guarantee what he described as “fuel abundance.”
“We will ensure that Nigeria enjoys fuel abundance, not fuel scarcity,” Bird affirmed.
However, he cautioned that fuel prices will still be influenced by global market conditions, since the crude used by the refinery is purchased at international benchmark rates, even under the crude-for-naira arrangement.
“Pricing is determined largely by global commodity markets,” he explained, adding that decisions on fuel price interventions rest with the government.
Bird concluded by noting that the refinery, which commenced sustained operations in early 2024, has significantly improved performance following maintenance and optimisation activities carried out earlier in the year.
Source: Sun News
