Amanze Chinonye
Chairman of the House of Representatives Committee on Petroleum Resources (Downstream), Ikenga Ugochinyere, has raised alarm over the pricing and supply of Nigerian crude to domestic refineries, alleging that middlemen in London and Dubai are inflating costs.
Speaking at a press briefing on Thursday, Ugochinyere claimed that crude oil produced in Nigeria is routed through these foreign intermediaries before reaching refineries like the Dangote Refinery, resulting in an extra $18 for every $100 barrel purchased.
“Crude oil produced in Nigeria is being sold to our refineries through middlemen based in London and Dubai, who add no value but collect huge fees,” he said. “For every barrel priced at $100, refineries pay $118, with the additional $18 going to intermediaries.”
Join our WhatsApp ChannelThe lawmaker warned that the refinery, which has a processing capacity of 650,000 barrels per day, is facing a looming crude supply shortage. Currently, it receives only five cargoes, far below the 15 required to operate at full capacity.
Ugochinyere cautioned that if the bottleneck is not addressed, Nigeria could experience fuel and diesel scarcity, with further pressure on domestic energy prices.
His warning coincides with heightened global crude volatility caused by escalating tensions in the Middle East. This week, Iran reportedly attacked the Mina Al-Ahmadi Refinery in Kuwait and the Ras Laffan LNG facility in Qatar, following Israeli strikes on Iran’s South Pars gas field. The disruptions, alongside blockages at the Strait of Hormuz, have pushed Brent crude to $110 per barrel and West Texas Intermediate to $96.78 per barrel as of Friday.
READ ALSO : Fuel Crisis Deepens as African Nations Eye Dangote Refinery Amid Global Supply Shock
In Nigeria, the ripple effects are evident at the pump. Dangote Refinery currently sells petrol at N1,175 per litre, while retail prices in Abuja range between N1,261 and N1,320 per litre.
Analysts warn that continued supply inefficiencies, compounded by global price shocks, could drive domestic fuel prices even higher in the coming weeks.
Ugochinyere urged the Presidential Technical Committee to intervene within 48 hours to resolve the crude supply issues and avert widespread economic and fuel disruptions.
As of this report, neither the Dangote Refinery nor relevant federal authorities have publicly commented on the allegations.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
