KEY POINTS
- Ethnic youth leaders say Dangote Refinery can meet Nigeria’s fuel needs despite global supply disruptions caused by US–Iran tensions.
- The group noted that rising crude prices and refinery shutdowns worldwide have tightened global fuel supply.
- They urged government and citizens to support domestic refining, saying it helps shield Nigeria from international oil market shocks.
Socio-cultural groups operating under the umbrella of Ethnic Youth Leaders across Nigeria have assured citizens that the Dangote Refinery has the capacity to meet the country’s petroleum needs despite disruptions in global oil supply caused by tensions between the United States and Iran.
In a joint statement issued in Abuja by their Deputy Spokesperson, Mirabel Ashara, the groups urged Nigerians not to panic over potential fuel shortages, noting that the locally owned refinery has the ability and commitment to support domestic fuel supply during global crises.
The youth leaders acknowledged that the ongoing conflict in the Middle East has already begun to affect global oil production and refining activities. According to them, the situation has led to the shutdown of some refineries and a reduction in production capacity in several parts of the world.
They also pointed out that China’s decision to suspend exports of gasoline and diesel has further tightened global supply, creating concerns about possible shortages and rising prices in many countries.
Confidence in Dangote Refinery capacity
Despite the global uncertainty, the groups expressed confidence that the Dangote Refinery can help shield Nigeria from major supply disruptions. They noted that the refinery possesses the capacity and operational readiness to supply the domestic market and reduce the country’s dependence on imported petroleum products.
According to the statement, the refinery has demonstrated a commitment to prioritising local fuel supply, which could help stabilise the Nigerian market in the face of international shocks.
The youth leaders commended the refinery’s decision to prioritise domestic fuel supply during the ongoing geopolitical crisis. They described the move as a key advantage of having a large-scale local refinery capable of processing crude oil within the country.
They explained that domestic refining can help Nigeria reduce vulnerability to external disruptions in the global energy market.
The statement also noted that the geopolitical tensions have driven up crude oil and freight prices globally. Benchmark Brent crude prices, they said, have risen sharply by about 26 percent within a short period, climbing to above 84 dollars per barrel.
In response to the rising operational costs, Dangote Refinery reportedly implemented a moderate adjustment of about N100 per litre in its ex-depot price of Premium Motor Spirit, representing roughly a 12 percent increase.
According to the group, the refinery absorbed approximately 20 percent of the cost increase in order to ease pressure on the domestic market.
