In a recent media interaction, David Bird, the CEO of Dangote Petroleum Refinery, addressed concerns regarding the price of fuel in Nigeria, revealing that despite the refinery's full operational capacity, a reduction in fuel prices is unlikely. Bird explained that the refinery is fully integrated into the international commodity markets, indicating that they buy Nigerian crude oil at prices tied to global benchmarks, which does not favor local consumers in terms of lower costs.

Bird elaborated on the refinery's operations, stating that even under the 'Crude for Naira' program, the refinery purchases Nigerian crude at prices reflecting international market conditions. Additionally, the costs incurred during the transportation of crude, such as freight and insurance, are also pegged to international rates. This means that even local production does not insulate the refinery from the global oil volatility, further complicating the situation for consumers expecting falling fuel prices.

With about 30 to 35 percent of the refinery's crude intake sourced from Nigerian production and the rest acquired on the global market, the complexities of fuel pricing in Nigeria are significant. Bird's comments underscore existing challenges in the Nigerian oil sector, shedding light on the reasons behind persistent high fuel prices amid local production capabilities. The insights provided by Bird may also inform discussions among policymakers and stakeholders on the future of fuel pricing in Nigeria amidst changing global market dynamics.