The Managing Director and Chief Executive Officer of Dangote Petroleum Refinery, David Bird, has assured Nigerians that the refinery will continue to meet the nation’s fuel demand despite growing instability in the global oil market.
Speaking during a media chat, Bird highlighted the strategic role of domestic refining in shielding the country from supply disruptions and the long queues that often accompany international fuel crises.
He explained that local refining capacity gives Nigeria critical supply security, ensuring steady availability of petroleum products even when global markets experience shocks.
Bird also clarified that under the crude-for-naira arrangement, Nigerian crude is still purchased at international benchmark prices, stressing that the refinery does not enjoy discounted crude oil.
According to him, countries that depend heavily on imported refined petroleum products are currently the worst affected as the global oil crisis deepens.
He revealed that global crude prices have shown extreme volatility in recent days, rising sharply from the mid-$60 range to nearly $120 per barrel within just one week.
The refinery, he noted, is fully exposed to international commodity market pressures, including crude prices, freight charges, insurance premiums and financing costs.
Bird further disclosed that freight costs have skyrocketed in the current market environment, with tanker shipment costs surging from about $800,000 to roughly $3.5 million.
Despite the challenges, the CEO said the refinery is currently operating at its full nameplate capacity of about 650,000 barrels per day, with the potential to scale up production to around 700,000 barrels daily.
Industry observers say the massive refinery, built by Nigerian billionaire Aliko Dangote, remains a major pillar in the country’s effort to achieve energy independence and reduce reliance on imported petroleum products.
