KEY POINTS
- NNPC is boosting crude supply to Dangote refinery to stabilise fuel availability in Nigeria
- Supply challenges persist as the refinery receives fewer cargoes than required, forcing reliance on imports
- Rising global oil prices and Middle East tensions are driving fuel price increases nationwide
The Nigerian National Petroleum Company Limited, NNPC, has intensified efforts to boost crude oil supply to the Dangote Petroleum Refinery as global oil prices surge. The move is aimed at ensuring steady fuel availability across Nigeria amid increasing market volatility.
NNPC officials said the company is working closely with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to maintain uninterrupted supply. The national oil firm reaffirmed its role as supplier of last resort in ensuring product availability nationwide.
The renewed push comes as Brent crude prices climbed to about $108 per barrel, driven by tensions involving Iran and disruptions in global oil flows. The instability has increased pressure on Nigeria to rely more on local refining capacity.
Dangote refinery faces crude shortfall
Despite the increased efforts, the Dangote refinery has raised concerns over insufficient local crude supply. The company said it receives about five cargoes monthly from NNPC, far below the 13 cargoes required to meet production needs, forcing it to rely on more expensive imported crude.
Despite the increased efforts, the Dangote refinery has raised concerns over insufficient local crude supply. The company said it receives about five cargoes monthly from NNPC, far below the 13 cargoes required to meet production needs, forcing it to rely on more expensive imported crude.
Industry sources indicated that part of NNPC’s production has been previously committed through forward sales, creating temporary supply shortfalls. However, the company maintains that it is exploring alternative sources to meet demand.
The crude supply challenges and global price surge have contributed to multiple fuel price increases by the Dangote refinery, with petrol prices rising above N1,200 per litre. The refinery attributed the hikes to high crude costs and limited domestic supply.
