According to him, geopolitical tensions in the Middle East have triggered sharp increases in crude oil prices, freight charges, and insurance costs, sending shockwaves across the global energy supply chain.
“Just a week ago, oil was trading in the mid-$60 range, and it has now climbed to nearly $120 per barrel,” Bird said, noting that the rapid surge has affected energy markets worldwide.
He explained that like other refiners globally, Dangote Refinery is exposed to fluctuations in crude oil prices and logistics costs. However, he noted that Nigeria now enjoys a major advantage through domestic refining capacity.
“What would be worse than $120 oil is no oil,” Bird said, pointing out that several countries dependent on imported fuel are already facing supply disruptions and rationing.
He added that some nations with significant refining capacity have begun restricting fuel exports in order to secure domestic supply amid the current global supply shock.
Bird stressed that as long as the refinery continues to receive Nigerian crude through the Nigerian National Petroleum Company Limited, it will sustain adequate fuel supply to the domestic market.
“With government support and steady access to domestic crude, Dangote Refinery will continue to meet all of Nigeria’s refined fuel requirements,” he assured.
The refinery, he revealed, is currently operating at its full nameplate capacity of about 650,000 barrels per day, making it one of the world’s largest single-train refineries.
At this capacity, the facility can produce between 50 million and 55 million litres of petrol daily, with additional output possible through blending if necessary.
Bird noted that Nigeria’s daily petrol consumption is estimated at about 35 million litres, indicating that the refinery has sufficient capacity to meet local demand.
He further emphasised that the refinery is prioritising supply to the Nigerian market to guarantee what he described as “fuel abundance.”
“We will ensure that Nigeria enjoys fuel abundance, not fuel scarcity,” Bird said.
However, he cautioned that fuel pricing will still be influenced by international market dynamics since crude used by the refinery is purchased at global benchmark rates, even under the crude-for-naira arrangement.
“Pricing is largely determined by global commodity markets,” he explained, noting that decisions on price interventions ultimately rest with the government.
Bird also disclosed that the refinery, which began sustained operations in early 2024, has recorded improved performance following maintenance and optimisation activities carried out earlier this year.
By ITREALMS News Desk/Editor
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