Nigeria’s largest private refinery, the Dangote Petroleum Refinery, has reassured Nigerians of sufficient fuel availability despite the ongoing Middle East crisis disrupting global oil supply.

In a statement released on Thursday, the company said it would prioritise the supply of petrol and other refined petroleum products to the domestic market to cushion the country against potential shortages.

According to the refinery, the decision is aimed at protecting Nigeria from the ripple effects of the conflict, which has already begun to affect global fuel availability.

The company noted that the crisis has forced several refineries in other parts of the world to shut down, thereby reducing global fuel output. It also pointed out that China has suspended exports of petrol and diesel, further tightening supply in international markets.

Dangote Refinery explained that the presence of a large domestic refining facility gives Nigeria a strategic advantage, as more fuel can now be produced locally rather than relying heavily on imports.

The refinery also highlighted the sharp increase in global oil prices triggered by the conflict, noting that the price of Brent crude has surged by about 26 per cent to over $84 per barrel.

As a result of the rising cost of crude oil, the company said it recently raised its depot price for petrol by N100 per litre, representing an increase of roughly 12 per cent. However, it stressed that it absorbed nearly 20 per cent of the additional cost to reduce the financial impact on consumers.

The company explained that it purchases crude oil at prevailing international market rates, regardless of whether the supply originates from Nigeria or elsewhere. Nigerian crude, it said, is typically priced between $3 and $6 above the Brent benchmark, while shipping costs add about $3.50 per barrel.

Consequently, crude oil now arrives at the refinery at an estimated cost of between $88 and $91 per barrel, compared with about $68 per barrel previously, when petrol was sold at N774 per litre.

The refinery disclosed that it receives around five cargoes of crude oil monthly from the Nigerian National Petroleum Company Limited, which are paid for in naira. However, it requires approximately 13 cargoes each month to meet the country’s fuel demand.

“This is one of the many benefits of domestic refining,” the company stated, noting that large-scale local refining significantly reduces Nigeria’s vulnerability to disruptions in global supply chains.

Due to the shortfall in local supply, the refinery said it has to source additional crude from international traders using foreign exchange.

Despite the challenges, the company maintained that expanding domestic refining capacity would help reduce Nigeria’s dependence on imported fuel and shield the country from severe shortages during global crises.

It also revealed plans to strengthen fuel distribution nationwide through the deployment of trucks powered by compressed natural gas (CNG).

According to the refinery, the rollout of the CNG-powered trucks will begin later this month to enhance delivery efficiency and lower transportation costs.