Dangote Refinery Acts to Stabilize Nigeria's Oil Market

Dangote Refinery has announced its commitment to stabilize Nigeria's petroleum market in response to recent global oil industry disruptions caused by conflicts in the Middle East. The refinery stated that it would increase the ex-depot price of premium motor spirit (PMS) by N100 per liter, representing a 12% adjustment, while absorbing 20% of the cost increase to cushion the impact on consumers.

The price of Brent crude has risen by 26% to $84 per barrel, affecting operational costs. Currently, Nigerian crude oil is sold at a premium of $3 to $6 above the Brent benchmark, with delivery costs ranging from $88 to $91 per barrel.

The refinery receives five cargoes of crude monthly from the Nigerian National Petroleum Company (NNPC) but requires 13 cargoes to meet domestic demand, leading to additional purchases from local and international traders. Despite these challenges, Dangote Refinery aims to ensure uninterrupted supply and plans to roll out compressed natural gas (CNG) power trucks to improve nationwide fuel distribution.