David Bird, the Chief Executive of Dangote Refinery, has clarified that despite the naira-for-crude agreement, the 650,000-barrel-per-day plant does not receive crude at a reduced price.
This revelation came during a media chat on Monday, which was subsequently shared on the company’s official X account.
Bird’s comments were made in defense of the refinery, which recently increased its petrol price at the pump from N396 per liter to N1,175 per liter.
He explained that the refinery’s exposure to international commodity markets—including crude oil prices, freight rates, insurance, and financing costs—is the primary reason behind the consistent rise in its petrol prices, mirroring the escalating cost of crude oil.
He emphasized that nations heavily reliant on imports, such as Nigeria, are suffering the most as the global oil crisis intensifies.
“Key talking points from a media chat with the managing director/CEO of Dangote Petroleum Refinery, David Bird”
“Dangote Refinery will continue to meet Nigeria’s fuel demand despite global supply disruptions and market volatility.”
“Domestic refining gives Nigeria supply security, ensuring the country avoids fuel shortages and queues even when global markets are disrupted.”
“Even under the crude-for-naira arrangement, Nigerian crude is purchased at international benchmark prices, meaning the refinery does not receive discounted crude.”
“Import-dependent countries are worst hit as the global oil crisis escalates.”
“Global oil markets are experiencing extreme volatility, with crude prices rising from the mid-$60 range to nearly $120 per barrel within a week.”
“The refinery is fully exposed to international commodity markets, including crude oil prices, freight rates, insurance, and financing costs.”
“Freight costs have surged dramatically, with tanker costs rising from about $800,000 to roughly $3.5 million per shipment in the current market environment.”
“Dangote Refinery operates at its full nameplate capacity of about 650,000 barrels per day, with the potential to increase production to around 700,000 barrels per day,” Dangote Refinery stated on X.
GoNews had reported that Dangote Petroleum Refinery has increased the price of Premium Motor Spirit (PMS) to ₦1,175 per litre, marking the third price hike for petrol in just seven days.
