- Blames Upstream Producers For Failing To Meet Crude Supply Obligations
Dangote Petroleum Refinery & Petrochemicals has reaffirmed its commitment to stabilising Nigeria’s energy supply amid mounting disruptions in the global oil market triggered by the ongoing Middle East conflict.
The crisis has forced several international refineries to shut down, while China has imposed a ban on gasoline and diesel exports, deepening fears of worldwide scarcity. In response, Dangote Refinery pledged to prioritise domestic supply, insulating Nigeria from the shocks reverberating across global markets.
Global crude and freight prices have surged, with Brent crude climbing by about 26% to above $84 per barrel. To cushion the impact locally, the refinery adjusted its ex-depot price of Premium Motor Spirit (PMS) upward by ₦100 per litre — a 12% increase — while absorbing 20% of the cost escalation.
Despite sourcing crude at prevailing international rates, Dangote Refinery faces additional challenges: Nigerian crude trades at a premium of $3–$6 above Brent, plus freight costs of $3.50 per barrel, pushing landed costs to between $88 and $91 per barrel. This compares with about $68 per barrel when PMS was priced at ₦774 per litre.
The refinery currently receives five cargoes monthly from the Nigerian National Petroleum Company (NNPC), paid for in naira but priced at international benchmarks. However, it requires 13 cargoes to meet domestic demand, forcing it to procure additional supplies from international traders at open market foreign exchange rates.
Dangote also criticised upstream producers for failing to meet crude supply obligations under the Petroleum Industry Act (PIA), leaving the refinery dependent on international traders who charge premiums.
As a private operator in a deregulated environment, the refinery stressed that selling below cost would jeopardise its ability to sustain production and guarantee uninterrupted supply. Yet, it highlighted the broader benefits of local refining — reducing exposure to global disruptions, moderating foreign exchange demand, and protecting Nigeria from severe shortages.
In a forward-looking move, Dangote Refinery announced plans to roll out Compressed Natural Gas (CNG)-powered trucks this month. The initiative aims to enhance nationwide distribution efficiency, lower logistics costs, and improve delivery timelines across the downstream sector.
The company reiterated its long-term vision: ensuring transparency, operational excellence, and sustainable energy security for Nigeria at affordable costs.
Dangote Petroleum Refinery & Petrochemicals has reaffirmed its commitment to stabilising Nigeria’s energy supply amid mounting disruptions in the global oil market triggered by the ongoing Middle East conflict.
The crisis has forced several international refineries to shut down, while China has imposed a ban on gasoline and diesel exports, deepening fears of worldwide scarcity. In response, Dangote Refinery pledged to prioritise domestic supply, insulating Nigeria from the shocks reverberating across global markets.
Global crude and freight prices have surged, with Brent crude climbing by about 26% to above $84 per barrel. To cushion the impact locally, the refinery adjusted its ex-depot price of Premium Motor Spirit (PMS) upward by ₦100 per litre — a 12% increase — while absorbing 20% of the cost escalation.
Despite sourcing crude at prevailing international rates, Dangote Refinery faces additional challenges: Nigerian crude trades at a premium of $3–$6 above Brent, plus freight costs of $3.50 per barrel, pushing landed costs to between $88 and $91 per barrel. This compares with about $68 per barrel when PMS was priced at ₦774 per litre.
The refinery currently receives five cargoes monthly from the Nigerian National Petroleum Company (NNPC), paid for in naira but priced at international benchmarks. However, it requires 13 cargoes to meet domestic demand, forcing it to procure additional supplies from international traders at open market foreign exchange rates.
Dangote also criticised upstream producers for failing to meet crude supply obligations under the Petroleum Industry Act (PIA), leaving the refinery dependent on international traders who charge premiums.
As a private operator in a deregulated environment, the refinery stressed that selling below cost would jeopardise its ability to sustain production and guarantee uninterrupted supply. Yet, it highlighted the broader benefits of local refining — reducing exposure to global disruptions, moderating foreign exchange demand, and protecting Nigeria from severe shortages.
In a forward-looking move, Dangote Refinery announced plans to roll out Compressed Natural Gas (CNG)-powered trucks this month. The initiative aims to enhance nationwide distribution efficiency, lower logistics costs, and improve delivery timelines across the downstream sector.
The company reiterated its long-term vision: ensuring transparency, operational excellence, and sustainable energy security for Nigeria at affordable costs.
Dangote Petroleum Refinery & Petrochemicals has reaffirmed its commitment to stabilising Nigeria’s energy supply amid mounting disruptions in the global oil market triggered by the ongoing Middle East conflict.
The crisis has forced several international refineries to shut down, while China has imposed a ban on gasoline and diesel exports, deepening fears of worldwide scarcity. In response, Dangote Refinery pledged to prioritise domestic supply, insulating Nigeria from the shocks reverberating across global markets.
Global crude and freight prices have surged, with Brent crude climbing by about 26% to above $84 per barrel. To cushion the impact locally, the refinery adjusted its ex-depot price of Premium Motor Spirit (PMS) upward by ₦100 per litre — a 12% increase — while absorbing 20% of the cost escalation.
Despite sourcing crude at prevailing international rates, Dangote Refinery faces additional challenges: Nigerian crude trades at a premium of $3–$6 above Brent, plus freight costs of $3.50 per barrel, pushing landed costs to between $88 and $91 per barrel. This compares with about $68 per barrel when PMS was priced at ₦774 per litre.
The refinery currently receives five cargoes monthly from the Nigerian National Petroleum Company (NNPC), paid for in naira but priced at international benchmarks. However, it requires 13 cargoes to meet domestic demand, forcing it to procure additional supplies from international traders at open market foreign exchange rates.
Dangote also criticised Dangote Refinery Becomes Nigeria’s Energy Lifeline After Global Refineries Shutdown
Dangote Petroleum Refinery & Petrochemicals has reaffirmed its commitment to stabilising Nigeria’s energy supply amid mounting disruptions in the global oil market triggered by the ongoing Middle East conflict.
The crisis has forced several international refineries to shut down, while China has imposed a ban on gasoline and diesel exports, deepening fears of worldwide scarcity. In response, Dangote Refinery pledged to prioritise domestic supply, insulating Nigeria from the shocks reverberating across global markets.
Global crude and freight prices have surged, with Brent crude climbing by about 26% to above $84 per barrel. To cushion the impact locally, the refinery adjusted its ex-depot price of Premium Motor Spirit (PMS) upward by ₦100 per litre — a 12% increase — while absorbing 20% of the cost escalation.
Despite sourcing crude at prevailing international rates, Dangote Refinery faces additional challenges: Nigerian crude trades at a premium of $3–$6 above Brent, plus freight costs of $3.50 per barrel, pushing landed costs to between $88 and $91 per barrel. This compares with about $68 per barrel when PMS was priced at ₦774 per litre.
The refinery currently receives five cargoes monthly from the Nigerian National Petroleum Company (NNPC), paid for in naira but priced at international benchmarks. However, it requires 13 cargoes to meet domestic demand, forcing it to procure additional supplies from international traders at open market foreign exchange rates.
Dangote also criticised upstream producers for failing to meet crude supply obligations under the Petroleum Industry Act (PIA), leaving the refinery dependent on international traders who charge premiums.
As a private operator in a deregulated environment, the refinery stressed that selling below cost would jeopardise its ability to sustain production and guarantee uninterrupted supply. Yet, it highlighted the broader benefits of local refining — reducing exposure to global disruptions, moderating foreign exchange demand, and protecting Nigeria from severe shortages.
In a forward-looking move, Dangote Refinery announced plans to roll out Compressed Natural Gas (CNG)-powered trucks this month. The initiative aims to enhance nationwide distribution efficiency, lower logistics costs, and improve delivery timelines across the downstream sector.
The company reiterated its long-term vision: ensuring transparency, operational excellence, and sustainable energy security for Nigeria at affordable costs.
(PIA), leaving the refinery dependent on international traders who charge premiums.
As a private operator in a deregulated environment, the refinery stressed that selling below cost would jeopardise its ability to sustain production and guarantee uninterrupted supply. Yet, it highlighted the broader benefits of local refining — reducing exposure to global disruptions, moderating foreign exchange demand, and protecting Nigeria from severe shortages.
In a forward-looking move, Dangote Refinery announced plans to roll out Compressed Natural Gas (CNG)-powered trucks this month. The initiative aims to enhance nationwide distribution efficiency, lower logistics costs, and improve delivery timelines across the downstream sector.
The company reiterated its long-term vision: ensuring transparency, operational excellence, and sustainable energy security for Nigeria at affordable costs.
