Dangote Refinery Says Nigerian Crude Purchased at Global Market Rates
The Dangote Petroleum Refinery and Petrochemicals has disclosed that it buys crude oil from Nigeria at prevailing international market prices, despite government initiatives designed to support domestic refineries.
Chief Executive Officer of the refinery, David Bird, explained that the facility operates within the global commodities market. According to him, the price of crude oil supplied to the refinery—whether sourced locally or imported—is determined by international pricing benchmarks.
He noted that the cost structure also factors in international freight and insurance charges whenever crude is transported to the refinery, making the facility’s operating expenses highly sensitive to fluctuations in the global oil market.
Bird’s comments come at a time when fuel prices are rising across Nigeria, underscoring how international crude oil benchmarks continue to influence the cost of refined petroleum products in the country.
Although the Dangote Refinery is expected to significantly boost Nigeria’s local refining capacity and strengthen energy security, its dependence on globally priced crude oil means domestic fuel prices remain closely tied to developments in the international oil market.
