Dangote Refinery Ensures Nigeria's Energy Stability Amid Crisis

Dangote Refinery has pledged to maintain Nigeria's energy stability despite the current volatility in the global oil market, which has been exacerbated by geopolitical tensions, including the ongoing conflict involving the United States, Israel, and Iran. The refinery aims to insulate Nigeria from supply shocks and prioritize domestic market supply.

The statement highlighted that the price of Brent crude has risen by 26% recently, surpassing $84 per barrel. In response, Dangote Refinery has adjusted its ex-depot price for Premium Motor Spirit (PMS) by 12%, absorbing 20% of the cost increase to cushion the domestic market.

The refinery faces challenges due to high crude oil prices, with Nigerian crude costing $3 to $6 per barrel above the Brent benchmark. Furthermore, the refinery has received five cargoes per month from NNPC at a price that falls short of the required 13 cargoes to support sales in Nigeria.

Despite these pressures, Dangote Refinery remains committed to ensuring uninterrupted supply and reducing exposure to international supply disruptions.