Managing Director of Dangote Refinery, David Bird, has assured Nigerians that the country will continue to enjoy steady fuel supply despite the sharp rise in global crude oil prices and disruptions in international energy markets.
Brent crude oil prices on Mondayapproached $120 a barrel, reaching approximately $119.50 in overnight trading due to escalating Middle East conflicts and rising geopolitical tensions. While prices briefly surged, they later eased toward $107 following reports of potential emergency reserve releases by G7 nations.
Speaking during a media briefing on Monday, Bird said the refinery remains committed to ensuring uninterrupted fuel supply to the domestic market even as global oil and gas markets experience extreme volatility driven by tensions in the Middle East.
According to him, crude oil prices have surged dramatically within a week, rising from the mid-$60 range to nearly $120 per barrel. The escalation, he noted, has also pushed up costs across the global energy supply chain, including freight, insurance and financing, affecting refiners worldwide.
Despite these pressures, Bird said the refinery is prioritising supply security for Nigeria.
He explained, “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.
“Nigeria with a domestic refining industry is not immune to that. However, the benefit of having a domestic refining industry is supply security.
“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.”
Continuing he said, “…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.
“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.”
Melissa Enoch
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