The Nigerian National Petroleum Company Limited, NNPCL, has increased crude oil supply to the Dangote Refinery.
The company will allocate seven cargoes for May marking an increase from five cargoes in previous months.
Sources said the move follows a spike in global fuel prices linked to tensions in the Middle East.
Fuel prices in Nigeria have reached record levels in recent weeks. The rise comes as the ongoing Iran conflict disrupts global oil supply.
As a result, buyers now struggle to secure crude cargoes. Many must look beyond traditional sources.
The situation has also increased costs for refiners like Dangote.
Despite the increase, the refinery still faces a major supply shortfall.
The 650,000 barrels-per-day facility needs between 13 and 15 cargoes each month. However, local supply has remained far below this level.
This gap has forced the refinery to import crude from international markets.
Importing crude has become more expensive for the refinery.
According to a refinery official, Dangote recently paid premiums as high as $18 per barrel above Brent crude prices.
This pushed costs to about $137 per barrel based on current benchmarks.
However, crude supplied by NNPCL is cheaper due to lower shipping costs.
A senior refinery official confirmed that discussions are ongoing.
He said the current increase will help operations but will not meet full demand.
Therefore, the refinery continues to negotiate with NNPCL for additional volumes.
The increased allocation could affect Nigeria’s crude exports.
With more supply directed to local refining, fewer cargoes may be available for export.
At the same time, global demand remains high due to reduced Middle East output.
This could tighten supply further in international markets.
Meanwhile, the Dangote Refinery has increased fuel supply within Nigeria, slightly meeting more than two-thirds of the country’s daily petrol demand, estimated at 60 million litres.
However, the refinery has also raised depot prices by about 13 percent.
The increased crude supply may stabilise fuel availability in the country, however, high global oil prices could still keep fuel costs elevated, while experts say sustained local supply will be key to easing pressure on consumers.
