Lagos, Nigeria – Dangote Petroleum Refinery & Petrochemicals has reaffirmed its commitment to shielding Nigeria from global petroleum supply shocks, following fresh disruptions in the international oil market triggered by the Middle East conflict.
The company said the crisis has forced several refineries worldwide to shut down or scale back operations, tightening global fuel supply. With China suspending exports of gasoline and diesel, pressure on the international market has intensified. The refinery stated that it would prioritise domestic supply to ensure Nigeria remains insulated from shortages — describing local refining as a strategic buffer against global volatility.
The instability has pushed benchmark Brent crude prices up by about 26 percent to over $84 per barrel, while freight costs have also surged. In response, the refinery implemented a N100 per litre increase in its ex-depot price of Premium Motor Spirit, representing roughly a 12 percent adjustment. It said it absorbed about 20 percent of the cost escalation to soften the impact on consumers, despite sourcing crude at full international market rates.
According to the company, Nigerian crude currently trades $3 to $6 above Brent, and with freight estimated at $3.50 per barrel, landing costs range between $88 and $91 per barrel — compared to about $68 per barrel when its ex-depot price stood at N774 per litre. It added that while it receives approximately five cargoes monthly from the Nigerian National Petroleum Company Limited priced in naira, this falls short of the 13 cargoes required for domestic demand, compelling it to source foreign exchange to purchase additional crude.
Okay News reports that the refinery also cited challenges in securing adequate supply from upstream producers under the Petroleum Industry Act, noting that reliance on international traders attracts extra premiums. It maintained that operating below cost in a deregulated market would threaten production sustainability and long-term supply stability.
Despite current pressures, the company said large-scale domestic refining continues to reduce foreign exchange demand, limit exposure to global disruptions and prevent severe shortages. It also announced plans to roll out Compressed Natural Gas-powered trucks this month to improve nationwide fuel distribution, lower logistics costs and enhance delivery timelines.
The refinery reiterated its commitment to transparency and long-term energy security, pledging to sustain operations in a manner that balances affordability with market realities.
