KEY POINTS
- The Federal Government, through NNPC, has begun sourcing crude oil from international traders to sustain operations at the Dangote refinery.
- Petrol prices have surged above ₦1,000 per litre amid rising global crude costs and supply challenges.
- Experts say the refinery has helped cushion Nigeria from worse fuel prices, which could have reached about ₦1,500 per litre without domestic refining.
The Federal Government, through the Nigerian National Petroleum Company Limited, NNPC, has begun sourcing crude oil from international traders to support operations at the Dangote Petroleum Refinery amid rising fuel prices and supply concerns.
The move is part of efforts to ensure the refinery continues production despite challenges with crude supply under the existing arrangements.
Officials say the intervention is necessary to stabilise domestic refining capacity, though it may not immediately translate into lower petrol prices for consumers across the country.
NNPC officials disclosed that the company is leveraging its global trading network to obtain crude oil from third-party suppliers at competitive prices.
According to them, the government remains committed to strengthening local refining capacity, including supporting the Dangote refinery, which is currently the largest refining facility in Africa.
Petrol Prices Climb Above ₦1,000 per Litre
The development comes at a time when petrol prices have surged across Nigeria, with pump prices exceeding ₦1,000 per litre in several states. In some filling stations, motorists are already paying as much as ₦1,200 per litre.
Industry observers say the rising cost of petrol has been worsened by recent increases in the refinery’s ex-gantry price. Within a week, the price jumped significantly from ₦774 per litre to ₦995 per litre, triggering fears of further price hikes.
Concerns intensified after the Dangote refinery reportedly suspended petrol loading twice within the same week, raising questions about supply stability and the possibility of additional increases in retail prices.
Rising geopolitical tensions in the global oil market have also contributed to the problem. The ongoing conflict involving Iran and the United States has disrupted global supply chains and pushed the price of Brent crude above $92 per barrel.
Higher crude prices make it more expensive for refineries to source feedstock, which ultimately affects the cost of refined petroleum products. Analysts say this international volatility is a major factor influencing fuel prices in Nigeria despite the country being one of the world’s largest crude oil producers.
