BREAKING: FG Seeks Crude Supply As Dangote Suspends Petrol Loading
The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has begun moves to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders to sustain domestic refining operations.
Industry sources disclosed to The PUNCH that the national oil company is leveraging its global trading network to obtain crude for the refinery amid supply constraints affecting local allocations.
However, officials warned that the intervention may not immediately translate to lower petrol prices for consumers.
The development comes as Nigerians grapple with rising fuel prices following recent adjustments by the $20bn Lekki-based refinery.
Petrol gantry prices have surged from ₦774 to ₦995 per litre within a week, triggering retail pump prices above ₦1,000 per litre in several states.
In some locations, filling stations now dispense petrol for as high as ₦1,200 per litre, further intensifying the economic burden on households and businesses.
Oil marketers also confirmed that the refinery recently temporarily suspended the loading of Premium Motor Spirit, raising concerns that another price increase could be imminent.
Industry analysts linked the situation partly to geopolitical tensions in the Middle East, particularly the conflict involving Iran, the United States, and Israel.
The crisis has pushed Brent crude prices above $92 per barrel and disrupted global energy supply chains.
Tensions around the Strait of Hormuz, one of the world’s most critical energy transit corridors, have also contributed to the surge in crude prices.
A senior NNPCL official confirmed that the company was sourcing crude through international traders to ensure continued supply to the refinery.
“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” the official said.
He added that the national oil company remained committed to supporting domestic refining.
“As the national oil company entrusted with safeguarding Nigeria’s energy security, NNPC Limited remains fully committed to supporting domestic refining, including the Dangote Petroleum Refinery,” the official stated.
The refinery has also highlighted challenges in accessing sufficient domestic crude.
Under the naira-for-crude policy, the refinery is expected to receive about 13 cargoes of crude monthly from NNPCL.
However, it currently receives only about five cargoes per month, forcing it to rely on imported crude purchased at international market rates.
A refinery source explained that the global energy crisis was affecting refined product prices worldwide.
“The current Middle East crisis is affecting overall global energy prices—crude oil, LNG and other fuels—and that has implications for refined product pricing globally,” the source said.
Energy stakeholders say improving domestic crude supply could help moderate petrol prices.
The National Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria, Eche Idoko, said full implementation of the naira-for-crude policy could stabilise prices.
“Dangote needs about 14 cargoes of crude from the government under the naira-for-crude policy to meet its demand,” Idoko said.
He noted that reliance on imported crude means the refinery may pass additional costs to consumers.
Meanwhile, the Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said restrictions on petrol import licences have strengthened Dangote refinery’s dominance in the market.
According to him, about 90 per cent of marketers who applied for PMS import permits were denied approvals.
“Imports should not exceed about 20 to 25 per cent of total supply while the rest is refined locally. That balance would strengthen the economy and improve energy security,” Olatide said.
Recent data from Kpler analytics also shows that Nigeria’s crude imports from the United States have risen sharply.
US crude exports to Nigeria increased to 41.13 million barrels in 2025, compared with 15.79 million barrels in 2024, representing a 161 per cent increase.
The rise reflects the growing dependence of Nigerian refineries on imported crude despite the country being Africa’s largest oil producer.
Amid supply pressures, the Dangote refinery has also expanded its network of petroleum marketers to ensure continued product distribution.
The list of approved distribution partners has increased from 13 companies to more than 30 nationwide, including: NIPCO Plc, MRS Oil Nigeria Plc, TotalEnergies Marketing Nigeria Plc, Conoil Plc
Analysts say the expansion is aimed at improving distribution while navigating supply constraints and volatile global oil prices.
With petrol now selling between ₦1,030 and ₦1,100 per litre in major cities, transport fares and the cost of goods are already rising.
