Dangote Refinery Assures Nigerians of Steady Fuel Supply as Oil Prices Near $120/barrel

photo credit : Business Elite Africa

The Managing Director of Dangote Petroleum Refinery, David Bird, has assured Nigerians that the country will continue to enjoy stable fuel supply despite the sharp rise in global crude oil prices and growing volatility in international energy markets.

Global benchmark Brent crude surged close to $120 per barrel on Monday, reaching about $119.50 in overnight trading as tensions in the Middle East intensified. Prices later eased to around $107 following reports that members of the Group of Seven (G7) could release emergency oil reserves to calm markets.

Speaking at a media briefing on Monday, Bird said the refinery remains committed to maintaining uninterrupted fuel supply to Nigeria even as global oil and gas markets face extreme fluctuations driven by geopolitical tensions.

He noted that crude oil prices had jumped dramatically within a week, climbing from the mid-$60 range to nearly $120 per barrel. According to him, the surge has also raised costs across the global energy supply chain, including shipping, insurance and financing, affecting refiners worldwide.

Despite these pressures, Bird said the refinery’s priority remains ensuring supply stability for the Nigerian market.

“We are exposed to global commodity price movements and we understand the impact that can have on businesses and economies, including inflation,” he said. “Nigeria, even with a domestic refining industry, is not immune to those global pressures. However, the advantage of refining locally is supply security.”

He warned that supply shortages could pose a greater threat than high prices, noting that several countries without domestic refining capacity were already experiencing rationing and panic buying.

“What would be worse than $120 oil is no oil,” Bird said. “There are countries right now, both developed and developing, that are already rationing fuel because they lack domestic refining capacity.”

Bird added that some nations were prioritising their domestic markets amid supply concerns. He cited China as an example, saying the country had restricted fuel exports in order to secure supplies for its own economy.

According to him, Nigeria’s refining capacity offers protection against such supply shocks.

“As long as we continue to receive Nigerian crude grades with the support of the government and the Nigerian National Petroleum Company Limited, the refinery will keep processing crude and prioritising supply to the domestic market,” he said.