<\/p>\n
\n He, however, is unsure of how prices would be affected moving forward.\n <\/p>\n
\n Per his words, the biggest issue surrounding pricing is the supply of Nigerian crude, which is priced in U.S dollars despite being produced locally.\n <\/p>\n
\n \u201cSo we actively seek additional Nigerian crude cargoes. We buy on the open market in U.S. dollars,\u201d he stated.\n <\/p>\n
\n \u201cHistorically, that\u2019s often changed through multiple traders\u2019 hands before we get access to it, and all that does is add further cost and premium to purchasing those Nigerian barrels and processing them through Dangote Refinery,\u201d he added.\n <\/p>\n
\n The Refinery\u2019s CEO then went on to assure Nigerians that while fuel prices might be unsteady, supply won\u2019t.\n <\/p>\n
\n \u201cNigeria will continue to enjoy supply security, we will maintain our operational capability, we are operating at capacity, we are thrilled with our operational performance,\u201d he stated.\n <\/p>\n
\n Despite challenges with pricing, the refinery says it remains willing to compete with imported fuel products if market rules are enforced fairly.\n <\/p>\n
\n \u201cWe are willing to compete on import parity prices, provided the regulator enforces a level playing field…\u201d\n <\/p>\n
David Bird’s remark on government intervention<\/p>\n
\n Further elaborating on pricing, the CEO remarked that it can be substantially influenced by Nigerian authorities, which he suggested have provided minimal government intervention.\n <\/p>\n
\n \u201cSo, on the question of the domestic supply of crude oil, the price that is provided to the domestic refinery is a question for the government,\u201d he said.\n <\/p>\n
\n “Right now, there is no discount, infact we feel we pay a premium not only for the crude-for-naira, but also for the Nigerian crude we purchase on the market that goes through multiple traders\u2019 hands.\u201d\n <\/p>\n
\n Bird also stated that the refinery has had discussions with authorities about enhancing supply chain efficiencies, which might ultimately lower prices.\n <\/p>\n
\n There are ways to take costs out of our supply chains, which is a question for the government. We continue to engage government\u2026 it is not a question of absolute price for crude, it is a role for government.\u201d\n <\/p>\n","protected":false},"excerpt":{"rendered":"The revision came approximately 2 weeks after a confrontation erupted between Israel, Iran, and the United States, which…\n","protected":false},"author":2,"featured_media":322707,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-322706","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/322706","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=322706"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/322706\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/322707"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=322706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=322706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=322706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}