Nigeria
Although it is an oil producing country, Nigeria is highly vulnerable to price fluctuations linked to the U.S.-Israel war on Iran. But in order to avoid shortages, the nation can rely upon billionaire Aliko Dangote’s refinery in Lagos, which is capable of processing some 650,000 barrels of crude oil per day.
On Tuesday, the refinery slashed the price of gasoline and diesel in line with the overall price of crude oil. Prices are now 1,075 naira per liter of gasoline and 1,430 naira per liter of diesel, a reduction of 100 and 190 naira respectively.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria has praised the Dangote Refinery. Billy Gillis-Harry said ‘given the volatility of prices, the Dangote refinery is our salvation’.
Earlier this week, the new director of the refinery said it is still operating at full capacity. But he added that regulatory costs imposed by '47 government agencies' weigh heavily, in his opinion.
he Dangote group also has to purchase some of its crude oil internationally. The plant’s management is therefore calling for access to the country’s crude oil to be mainly for local refineries to support domestic production, as the war in the Middle East rages on.
The war is impacting the Strait of Hormuz, viewed as the world's most important gateway for oil transport. Since the war broke out, the number of vesels trvelling through the Strait has dropped significantly, impacting oil prices.
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