Devakumar Edwin, the Vice President of Dangote Industries Limited, has blamed the obstruction of crude oil supply to Dangote refinery, which has a capacity of 650,000 barrels per day, on International Oil Companies (IOC)
Edwin, in a statement on Wednesday, said that the IOCs were selling crude at prices $2 to $4 per barrel higher than the Nigeria Upstream Petroleum Regulatory Commission’s official price. He claimed the IOCs preferred selling crude produced in Nigeria to Asian countries.
“Data on platforms like Platts and Argus shows that the price offered to us is way higher than the market prices tracked by these platforms. We recently had to escalate this to NUPRC”, he stated.
The subsequent development occurred after NUPRC recently committed to implementing the Domestic Crude Supply Obligation (DCSO) policy within the sector.
It is important to note that Aliko Dangote, the Chairman of Dangote Group, confirmed that the company’s refinery in Lagos will start supplying fuel in August 2024 after experiencing a delay in meeting its July target.