In a statement released on Thursday, the refinery said it would prioritise the supply of petrol and other refined petroleum products to the Nigerian market in order to shield the country from global shortages triggered by geopolitical tensions.

According to the company, the crisis has forced some international refineries to shut down, tightening global fuel supply. It also noted that China’s suspension of petrol and diesel exports has further intensified pressure on the international market.

The refinery stated that Nigeria’s growing domestic refining capacity positions the country to avoid the worst effects of global disruptions, as more fuel can now be refined locally rather than relying heavily on imports.

It disclosed that global crude prices have surged sharply, with Brent crude rising by about 26 per cent to over $84 per barrel due to the crisis.

As a result of rising input costs, the refinery increased its depot petrol price by N100 per litre — approximately a 12 per cent hike. However, it said it absorbed about 20 per cent of the additional cost to ease the burden on consumers.

The company explained that it purchases crude oil at international market rates, whether sourced locally or from abroad. Nigerian crude, it said, is typically priced between $3 and $6 above the Brent benchmark, with shipping costs adding about $3.50 per barrel. This brings the effective landing cost of crude to between $88 and $91 per barrel, compared to about $68 per barrel when petrol previously sold at N774 per litre.

The refinery revealed that it currently receives about five cargoes of crude oil monthly from the Nigerian National Petroleum Company Limited, paid for in naira. However, it requires approximately 13 cargoes per month to meet Nigeria’s total fuel demand.

Due to this shortfall, the refinery said it supplements supply by purchasing additional crude from international traders using foreign exchange.

“This is one of the many benefits of domestic refining,” the company stated, noting that large-scale local refining significantly reduces Nigeria’s vulnerability to international supply disruptions.

Despite prevailing global challenges, the refinery maintained that expanding domestic production will help reduce dependence on imports and safeguard the country against severe fuel shortages during international crises.

The company also announced plans to enhance fuel distribution nationwide by deploying trucks powered by compressed natural gas (CNG). It said the rollout of CNG-powered trucks will commence this month to accelerate delivery and lower transportation costs.