Petrol: Dangote Makes Fresh Declaration Amid Global Crisis

President of the Dangote Group, Aliko Dangote, has assured Nigerians and other African nations of Dangote Refinery’s ability to meet growing demand despite global supply challenges.

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Naija News reports that the billionaire businessman made the promise as the Dangote Refinery increased exports of petrol and urea to African countries grappling with supply disruptions triggered by the ongoing conflict involving Iran.

Dangote, on Monday, during a tour of the facility, noted that the refinery had helped cushion the effects of the crisis both locally and across the continent.

“What I can do is assure Nigerians … and most of West Africa, Central Africa, and East Africa, we have the capacity to supply them,” he said.

Providing insight into operations, the billionaire industrialist revealed that the refinery had already shipped about 17 cargoes of gasoline to other African countries.

He added that exports of urea fertiliser had also surged recently as buyers searched for alternative supply sources.

“In the last couple of days, we’ve been looking to mostly African countries, which we were not doing before,” Dangote said, referring to fertiliser shipments.

Officials noted that the refinery has the capacity to produce up to three million metric tonnes of urea annually, a significant portion of which is usually exported to the United States and South America.

However, shifting global dynamics have seen increased focus on African markets.

Despite increased production, fuel prices in Nigeria have continued to hit record highs, driven largely by rising global crude oil prices.

Industry data indicate that output from the refinery has yet to fully offset the impact of elevated crude costs.

Dangote disclosed that the refinery is seeking more crude oil cargoes priced in local currency to help reduce fuel costs domestically.

A recent report indicated that the Nigerian National Petroleum Company had increased crude allocations to the refinery, with seven cargoes scheduled for May, up from five in previous months.

Meanwhile, global oil prices extended gains on Tuesday as tensions around Iran intensified, particularly over the strategic Strait of Hormuz, through which about a fifth of the world’s oil supply passes.

United States President Donald Trump issued a stern warning to Iran, threatening severe consequences if the country fails to reopen the Strait before a set deadline.

He warned of possible attacks on key infrastructure, including bridges and power plants, and vowed to unleash “hell” on Tehran if it does not comply.

Brent crude rose by $1.74, or 1.6 per cent, to $111.51 per barrel, while U.S. West Texas Intermediate gained $3.45, or 3.1 per cent, to $115.86.

In a related development, the OPEC+ agreed to a modest production increase of 206,000 barrels per day for May.

Also, Saudi Arabia raised the official selling price of its May Arab Light crude to Asia to a record premium of $19.50 per barrel above the Oman/Dubai benchmark, marking a sharp increase from the previous month.