Dangote Refinery pledges to shield Nigeria from global fuel shocks amid Middle East crisis

Dangote Petroleum Refinery & Petrochemicals has reassured Nigerians that it remains committed to stabilising domestic fuel supply, even as global refinery disruptions and rising crude prices threaten energy security.

The refinery’s statement comes amid heightened tensions in the Middle East, which have led to shutdowns and reduced production at several international refineries. These disruptions have triggered a global scarcity of petroleum products, prompting China to ban gasoline and diesel exports.

Dangote Refinery said it is prioritising domestic supply to cushion Nigeria from these international market shocks, highlighting the advantage of local refining in ensuring energy security.

Global crude and freight prices have surged sharply, with Brent crude rising by roughly 26% to over $84 per barrel in a short period. In response, Dangote Refinery implemented a measured N100 per litre increase in its ex-depot Premium Motor Spirit price—a roughly 12% adjustment—while absorbing 20% of the cost escalation to protect Nigerian consumers.

The company noted that Nigerian crude is priced $3–$6 higher than Brent crude, with additional freight costs of about $3.50 per barrel, meaning crude now lands at the refinery at $88–$91 per barrel, compared with about $68 per barrel previously when the ex-depot price was N774 per litre.

Dangote Refinery also explained that local crude supply from the Nigerian National Petroleum Company (NNPC) has been insufficient, forcing the company to procure additional cargoes from international traders at market rates, often incurring premiums. This reliance on foreign procurement, combined with rising international prices, has increased operational costs.

“Selling below cost would undermine our ability to procure crude, sustain production, and guarantee uninterrupted supply to Nigerians,” the refinery said, emphasising its role in moderating foreign exchange demand and protecting the country from severe shortages during global instability.

To further enhance distribution efficiency, the refinery is accelerating the deployment of Compressed Natural Gas-powered trucks nationwide. The rollout, expected to commence this month, aims to reduce logistics costs, improve delivery timelines, and cushion the impact of global shocks on the downstream sector.

Dangote Refinery concluded by reaffirming its commitment to operational excellence, transparency, and long-term energy security for Nigeria at affordable costs.