Socio-cultural groups under the aegis of Ethnic Youth Leaders across the country have urged Nigerians not to panic over possible disruption in petroleum supply arising from the ongoing United States/Israel and Iran war, saying the capacity of the Dangote Refinery is sufficient to serve the nation’s needs.
The youth leaders, in a joint statement issued by their Deputy Spokesperson, Mirabel Ashara at the weekend, said the refinery has both the capacity and the patriotic commitment to ensure that Nigeria is insulated from shocks in the global oil market triggered by the crisis in the Middle East.
They acknowledged that the conflict in the region has already begun to affect global petroleum supply, with reports of shutdowns and reduced production in some refineries across the world, a situation that has contributed to a tightening supply of refined products.
Global oil prices have surged in recent days following the escalation of the conflict, with crude prices rising sharply amid fears of disruption to energy supply chains in the Middle East.
The groups said the situation has also been worsened by China’s decision to restrict the export of gasoline and diesel, a development they noted could deepen global supply challenges.
The ethnic youth leaders, however, applauded Dangote refinery resolve to ensure that Nigeria is insulated from global supply shocks by prioritising supply to the domestic market in the face of the ongoing US-Iran war.
They noted that the refinery had assured Nigerians that it would continue to play a stabilising role by ensuring that domestic fuel demand is met even as the international market experiences disruptions.
According to them, the refinery’s decision to prioritise local supply demonstrates the importance of domestic refining capacity in protecting the country from external shocks in the global energy market.
“As stated by the company itself, ‘Dangote Refinery will ensure that Nigeria is insulated from these supply shocks by prioritising supply to the domestic market. This is one of the many benefits of domestic refining.
“The conflict has driven global crude and freight prices sharply higher, with benchmark Brent prices rising by about 26 per cent within a short period to above $84.0 per barrel.
They explained that the refinery had also implemented a measured adjustment of about N100 per litre in its ex-depot price of Premium Motor Spirit (PMS) in response to rising global crude costs, adding that the company had absorbed part of the cost increase to reduce the impact on Nigerians
“We totally align with Dangote Refinery on this and call on Nigerians to remain calm as with the indigenous-Nigerian company the people’s interest can always be protected. The onus is on our government and all of to remain supportive of the truly Nigeria’s local refinery”, the group said.