US-Iran war: Dangote refinery halts loading, set to announce new ex-gantry petrol price
US-Iran war: Dangote refinery halts loading, set to announce new ex-gantry petrol price
David Bird, chief executive officer (CEO) of the Dangote refinery, says the company will soon announce a new ex-gantry price for petrol.
On Monday, global crude oil price crossed the $100 per barrel mark — the highest level since July 2022 — amid the ongoing war in the Middle East.
The war involving the United States and Iran has raised oil price, leading to a hike in petrol prices.
Speaking during a press briefing on Monday, Bird said the refinery halted loadings from midnight to update its system with the new gantry price following the recent spike.
On Sunday, reports had claimed that truck-out operations for petrol were suspended at the refinery.
However, the Dangote refinery CEO assured that the refinery was “ready and available” for product loading.
“There is a gantry price movement, so we have paused loadings as of midnight, and we’re updating the system to the new gantry price as a result of oil spiking $30 in the last 24 hours,” Bird said.
“There is a new gantry price. Gantry loadings will commence immediately upon system upload. So, dispelling myths, Dangote Refinery is fully open for business.”
He assured marketers that they could lift products at the gantry.
“We will prioritise the domestic market for supply security on the back of acknowledging that we are exposed to global commodities,” Bird said.
“We are not immune as a domestic refining industry that secures its crude on international benchmarks, we are not immune from those price movements, those commodity movements.”
The impending price adjustment will mark the third time Dangote refinery has increased its ex-gantry price in one week.
On March 7, the plant raised the price to N995 per litre — from N874 per litre
‘WE’LL CONTINUE TO MEET DOMESTIC MARKET REQUIREMENTS’
Speaking further, Bird said, provided the plant continues to receive Nigerian grades “with the support of the Nigerian government and NNPC, albeit at internationally benchmark prices, we will continue to process that oil and serve the domestic market requirements”.
“And that is happening as we speak. There is uninterrupted supply to the Nigerian economy for all of its refined fuels requirements. That cannot be said for developed markets,” he said.
“You’ve seen panic buying in Australia, in the UK, huge petrol stations. And developing markets who are also going to be quite hard hit, in fact, if not worse than developing markets, who will be potentially able to pay.
“Bangladesh, Pakistan, et cetera, all seeing government intervention to ration supply and curtail.”
He reiterated that with a government-supported domestic refining industry and local crude production, the company would continue to meet all of Nigeria’s refined fuel requirements.
“However, we are exposed to global commodity pricing. Pricing is a discussion for the government as a crude producer,” Bird said.
The CEO assured that as an independent domestic refinery, the plant will maintain steady operations and prioritise domestic supply to ensure Nigeria continues to enjoy fuel abundance rather than scarcity.
