Dangote Petroleum Refinery & Petrochemicals has reassured Nigerians of its commitment to maintaining energy stability in the country despite growing volatility in the international oil market.<\/p>\n
The company said recent tensions in the Middle East have disrupted global refining activities, leading to the shutdown of some refineries and a reduction in production worldwide. The situation has triggered concerns over a possible shortage of petroleum products, especially as China recently restricted the export of gasoline and diesel.<\/p>\n
According to the refinery, its operations will help shield Nigeria from these supply shocks by prioritising the domestic market. It noted that local refining remains one of the key advantages in protecting the country from fluctuations in global supply chains.<\/p>\n
The refinery explained that the ongoing conflict has pushed global crude oil and freight costs significantly higher. Benchmark Brent crude oil prices have risen by about 26 percent in a short period, climbing above 84 dollars per barrel.<\/p>\n
In response to the rising costs, the refinery announced a measured adjustment of N100 per litre in its ex-depot price of Premium Motor Spirit (PMS), representing an increase of roughly 12 percent. It added that the company has absorbed about 20 percent of the cost escalation to ease pressure on the domestic market, despite continuing to purchase crude oil at prevailing international market rates.<\/p>\n
The refinery further explained that Nigerian crude oil currently sells at a premium of between 3 and 6 dollars above the Brent benchmark. With an additional freight cost of about 3.50 dollars per barrel, crude delivered to the refinery costs between 88 and 91 dollars per barrel, compared with about 68 dollars per barrel when its ex-depot petrol price stood at N774 per litre.<\/p>\n
It also noted that while the Nigerian National Petroleum Company Limited supplies about five cargoes of crude monthly, which are paid for in naira, these volumes fall far short of the 13 cargoes required each month to meet domestic demand. <\/p>\n
As a result, the refinery must source foreign exchange from the open market to pay for additional crude purchased from both local and international traders.<\/p>\n
According to the company, the high cost of crude is further worsened by the inability of some upstream producers in Nigeria to meet supply obligations under the Petroleum Industry Act, forcing the refinery to rely on international traders who charge additional premiums.<\/p>\n
Dangote Refinery stressed that as a private enterprise operating in a deregulated market, it must align its pricing with market realities to ensure operational sustainability. <\/p>\n
It warned that selling petroleum products below cost would affect its ability to procure crude oil, sustain production and maintain steady supply to Nigerians.<\/p>\n
Despite the prevailing challenges, the company said large-scale domestic refining remains critical to reducing exposure to international supply disruptions, lowering pressure on foreign exchange demand and preventing severe fuel shortages during periods of global instability.<\/p>\n
The refinery also disclosed plans to accelerate the deployment of Compressed Natural Gas-powered trucks to strengthen nationwide distribution. <\/p>\n
The initiative, expected to commence this month, is aimed at improving delivery timelines, lowering logistics costs and enhancing efficiency in the downstream sector.<\/p>\n
The company reaffirmed its commitment to transparency, operational excellence and the long-term goal of ensuring sustainable and affordable energy security for Nigeria.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dangote Petroleum Refinery & Petrochemicals has reassured Nigerians of its commitment to maintaining energy stability in the country despite growing volatility in the international oil market. The company said recent tensions in the Middle East have disrupted global refining activities, leading to the shutdown of some refineries and a reduction in production worldwide. The situation […]<\/p>\n","protected":false},"author":2,"featured_media":9743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-9742","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oil-gas"],"_links":{"self":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/9742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/comments?post=9742"}],"version-history":[{"count":1,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/9742\/revisions"}],"predecessor-version":[{"id":9744,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/posts\/9742\/revisions\/9744"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media\/9743"}],"wp:attachment":[{"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/media?parent=9742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/categories?post=9742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/peoplesforumonline.com.ng\/about\/wp-json\/wp\/v2\/tags?post=9742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}