The Managing Director of the Dangote Refinery, David Bird, has assured Nigerians of continued fuel availability despite the sharp surge in global crude oil prices and growing instability in international energy markets.
Global benchmark Brent crude oil climbed close to $120 per barrel on Monday, touching about $119.50 in overnight trading as tensions in the Middle East intensified. Prices later eased to around $107 following reports that members of the Group of Seven could release emergency oil reserves to stabilise the market.
Speaking during a media briefing on Monday, Bird said the refinery remains committed to maintaining a steady supply of fuel to Nigeria even as the global oil and gas market experiences heightened volatility.
He explained that crude oil prices have risen sharply within a week, climbing from the mid-$60 range to nearly $120 per barrel, a development that has significantly increased costs across the global energy supply chain, including freight, insurance and financing for refiners worldwide.
Despite the pressure, Bird said the refinery’s priority remains ensuring supply security for the Nigerian market.
“We are exposed to global commodity price movements. We understand the pain that that incurs in our business and obviously throughout the economy to drive inflation and so forth. And that is being felt worldwide,” Bird said.
“Nigeria with a domestic refining industry is not immune to that. However, the benefit of having a domestic refining industry is supply security.”
He warned that the situation in some countries without local refining capacity could become more severe.
“What would be worse than $120 oil is no oil. And there are countries right now developed and developing without a domestic refining industry that are already rationing. They are already seeing panic buying and heaven knows what will happen over the next 10 days to two weeks as some of those countries with low supply security stocks start to endure significant shortages…This is both crude and refined products.”
Bird added that several countries are prioritising their domestic energy needs in response to the uncertainty in global supply.
“…And you see a lot of self-interest in the way every country behaves. China has a huge refining industry…and because now they’re worried about their supply of crude, they have banned any exports. They have ensured that their domestic refining industry prioritises the local market.”
He stressed that continued access to Nigerian crude would enable the refinery to maintain production and support domestic fuel supply.
“What is worse than $120 oil is no oil and right now Dangote Refinery, provided we continue to get access to Nigerian grades with the support of the Nigerian government and NNPC and we will continue to process that oil and serve the domestic market with priority and that is happening as we speak,” he said.
