The Managing Director and Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, has assured Nigerians that the refinery will continue to meet the country’s fuel demand despite growing instability in global oil markets.
Speaking during a media chat, Bird said domestic refining has strengthened Nigeria’s energy security, helping the country avoid fuel shortages and long queues even when international supply chains face disruptions.
According to him, Nigeria’s reliance on local refining capacity is critical at a time when global oil markets are experiencing extreme volatility.
He explained that crude prices have surged sharply, rising from the mid 60 dollars per barrel range to nearly 120 dollars per barrel within a week, driven by the ongoing global oil crisis.
Bird noted that countries heavily dependent on imported fuel are likely to suffer the most as supply disruptions intensify.
He also clarified that the refinery does not receive discounted crude oil under the crude for naira arrangement. Instead, Nigerian crude is purchased at international benchmark prices, meaning the facility operates under the same market conditions as other global refiners.
The refinery, he said, remains fully exposed to international commodity markets, including fluctuations in crude prices, freight rates, insurance premiums and financing costs.
Bird further revealed that shipping costs have surged dramatically in recent weeks. According to him, tanker freight costs have risen from about 800,000 dollars to roughly 3.5 million dollars per shipment due to current market pressures.
Despite the challenging global environment, the Dangote Refinery is operating at its full nameplate capacity of about 650,000 barrels per day.
Bird added that production could potentially increase to around 700,000 barrels per day as operational optimisation continues.
He stressed that the refinery’s scale and domestic production capability place Nigeria in a stronger position to manage fuel supply shocks compared with countries that rely entirely on imports.
