NNPC Increases Crude Supply to Dangote Refinery to Seven Cargoes Amid Rising Fuel Prices

The Nigerian National Petroleum Company Limited (NNPC) has announced an increase in crude oil allocations to the Dangote Petroleum Refinery, raising the supply to seven cargoes for May. This marks a boost from the five cargoes provided in previous months and comes as part of efforts to enhance domestic fuel production and ease pressure on Nigeria’s rising petrol prices. However, the refinery will continue to receive five cargoes in April.

Industry sources reveal that despite the increase, the 650,000-barrel-per-day refinery still faces a significant shortfall. It requires 13–15 cargoes monthly to operate at full capacity, forcing Dangote Refinery to import additional crude at prices affected by geopolitical tensions, particularly in the Middle East. The refinery had previously warned that limited domestic crude supply was constraining operations and increasing costs.

NNPC officials confirmed that the company is leveraging its global crude trading network to source third-party supplies for the Dangote refinery at competitive international market rates. A senior official, speaking anonymously, said the national oil company remains fully committed to supporting domestic refining within the framework of existing agreements, ensuring Nigeria’s energy security even amid temporary supply constraints.

The increased crude supply could help the refinery meet a larger share of Nigeria’s fuel demand, currently estimated at 60 million litres per day, though the facility is only covering slightly more than two-thirds. Petrol depot prices have already been raised by about 13 percent to offset import costs, highlighting the ongoing pressure on the downstream sector. Analysts note that sustained supply at required volumes is critical to stabilizing domestic fuel prices.

While the NNPC’s move may impact Nigeria’s crude export volumes, diverting more crude to domestic refining, it underscores the government’s commitment to boosting local refining capacity. Since commencing operations in 2024, the Dangote refinery has been pivotal in reducing Nigeria’s dependence on imported petroleum products. Continued support and consistent crude supply remain key to unlocking the refinery’s full potential and delivering long-term economic benefits.

source: punch