Dangote Refinery Vows to Protect Nigeria from Global Fuel Scarcity
By Patience Ikpeme
The Dangote Petroleum Refinery has assured Nigerians that it will do everything possible to keep fuel available in the country, even as the world faces a major shortage of petroleum products.
In a statement issued on Thursday, the refinery explained that the ongoing war in the Middle East has forced many refineries abroad to shut down, causing a global scramble for fuel.
Countries like China have already stopped sending their petrol and diesel to other nations. However, the Dangote Refinery stated that it will make sure Nigeria does not suffer from these international problems by making the Nigerian market its first priority. The company noted that this is one of the biggest reasons why refining crude oil at home is better for the country.
Because of the global crisis, the price of crude oil and the cost of shipping it have jumped by about 26%. Despite this huge increase, the refinery said it only added N100 to its price at the depot. This means the refinery is paying for a large part of the extra cost itself just to help Nigerians.
Explaining the current situation, the refinery said, “The refinery has absorbed 20% of the cost escalation, for now, to cushion the domestic market. This is despite continuing to source crude at prevailing international market prices.”
The company also pointed out that buying Nigerian crude oil is actually more expensive than buying the global benchmark oil. When they add the cost of bringing the oil to the refinery, the price is much higher than what it was a few months ago. For example, while they used to get oil at $68 per barrel when petrol was N774, they now pay between $88 and $91 per barrel.
The refinery further explained that they need 13 shipments of oil every month to keep Nigeria running, but they only get five from the NNPC in Naira. For the rest, they have to find dollars at high market rates to buy from other traders. They also mentioned that many local oil producers are not giving the refinery enough crude oil as the law requires, which makes them go to international traders who charge extra fees.
The management said that as a private business, they cannot sell fuel for less than what it costs to make it, or they won’t be able to buy more oil to keep the machines running. “Selling below cost would undermine its ability to procure crude, sustain production and guarantee uninterrupted supply to Nigerians,” the statement noted.
To help bring down the cost of moving fuel across the country, the refinery is starting something new this month. They are bringing out special trucks that run on Compressed Natural Gas (CNG) instead of expensive diesel. This move will make fuel distribution faster and cheaper for everyone.
The refinery promised to stay open and honest with the public, saying their main goal is to make sure Nigeria has enough energy at a price people can afford, even when the rest of the world is struggling.
