David Bird, David Bird, stated that Dangote Refinery incurs costs from 47 government agencies, which affect petrol pump prices across Nigeria. He highlighted the need for the Federal Government to prioritise domestic refining during global oil market volatility.

Bird called for strategic allocation of high-quality crude oil to local refineries, saying that currently, the refinery is treated as the customer of last resort, with international buyers receiving priority. He cited practices in countries like China, Thailand, and Vietnam, which safeguard crude for domestic industries.

The MD emphasised that government agencies should reduce regulatory costs throughout the supply chain, including fees imposed by NPA and NIMASA, to make local refining more competitive. He urged the government to ensure ample crude supply for Nigerian refineries first.

He revealed that monthly crude requests submitted to the government are often fulfilled abroad first, forcing the refinery to source from international traders who add extra costs, driving up domestic petrol prices.

Bird explained that the methodology for crude allocation under the Crude for Naira program disadvantages the domestic industry, with some requested grades ending up being sold internationally before returning at higher prices.

The pump price of petrol has risen by over ₦350 per litre following the Iran-US conflict and the closure of the Strait of Hormuz, highlighting the impact of global tensions on Nigeria’s fuel costs.