The Digest:
Dangote Refinery Managing Director David Bird has revealed that the refinery incurs costs from 47 different government agencies, contributing to the final pump price of petrol. Speaking at a press conference in Lagos, Bird said the Federal Government treats the refinery as a "customer of last resort," with the best crude grades sold to international buyers while the refinery buys from traders at inflated prices. "We put forward every month a whole raft of grades; we love Bonny Light, we love escravos… the priority, I feel, is just more that the domestic refining industry are seen as customers of first preference, rather than customers of last resort," he stated. Bird called on all government agencies to examine their contribution to costs and urged Nigeria to prioritize local refining amid extreme global volatility. The refinery also raised concerns about crude allocated to international traders that later returns to the market at higher prices.
Key Points
- Refinery deals with 47 government agencies, each adding costs.
- Government treats Dangote as "customer of last resort" for crude allocation.
- Best crude grades sold abroad; refinery forced to buy from traders at premiums.
- Calls for domestic crude prioritization amid global volatility.
- Petrol price has jumped over N350 due to Iran-US war and Strait of Hormuz closure.
Sources: Press Conference, Channels Tv
