NNPC Moves to Secure Crude Supply for Dangote Refinery as Petrol Prices Rise Above N1,000
- The NNPCL is sourcing crude oil for the Dangote refinery through international traders to sustain refining operations
- Nigerians are lamenting the rise in petrol prices, with pump prices in some locations reaching about N1,200 per litre
- Nigeria’s crude imports from the United States increased significantly in 2025 as domestic supply remains insufficient
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigerian National Petroleum Company Limited (NNPC) has started making efforts to secure crude oil supply for the Dangote Petroleum Refinery from international third-party traders to help sustain domestic refining operations, PUNCH reported.
Officials familiar with the development said the arrangement is aimed at ensuring the refinery continues production despite challenges in accessing enough local crude oil. However, they warned that the move may not immediately lead to a drop in petrol prices for Nigerians.
Source: Getty Images
According to industry sources, the refinery recently paused the loading of Premium Motor Spirit (PMS), commonly known as petrol. The temporary suspension, which happened twice within a week, has fuelled speculation about another possible price increase.
Petrol prices have already risen sharply in recent days. Gantry prices reportedly climbed from N774 per litre to N995 per litre, while pump prices in some states have crossed N1,000 per litre, with a few filling stations selling the product for as much as N1,200.
NNPC moves to support crude supply
A senior official at NNPC, who spoke on condition of anonymity because they were not authorised to comment publicly, told PUNCH that the company is using its global trading connections to source crude oil for 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.
The official added that NNPC remains committed to supporting local refining capacity in line with its responsibility to safeguard Nigeria’s energy security.
Dangote refinery explains pricing concerns
Sources at the Dangote refinery also told PUNCH that relying on imported crude may not immediately reduce petrol prices.
According to a refinery official, global energy prices have been affected by tensions in the Middle East, particularly the ongoing conflict involving Iran and the United States. These tensions have pushed the price of Brent crude above $92 per barrel.
The crisis has also increased pressure around the Strait of Hormuz, a key global oil transit route, making crude supply more expensive for refineries.
The refinery noted that it currently receives about five crude cargoes monthly from NNPC under the naira-for-crude policy, far below the 13 cargoes required to meet its operational needs. As a result, it has had to purchase additional crude on the international market.
Industry stakeholders react
Stakeholders in Nigeria’s oil sector say expanding domestic crude supply to local refineries could help moderate fuel prices.
Eche Idoko, spokesperson for the Crude Oil Refinery Owners Association of Nigeria (CORAN), said the naira-for-crude policy could influence petrol prices if fully implemented.
He explained that if the government supplies more crude to the Dangote refinery in naira, production costs could reduce. However, he noted that importing crude from the US and transporting it through global shipping routes increases costs, which may be passed on to Nigerian consumers.
Idoko also suggested that the policy should be extended to other domestic refineries to encourage competition and stabilise the market.
Analysts raise concerns about limited imports
Energy analyst Jeremiah Olatide, chief executive officer of Petroleumprice.ng, said restrictions on petrol import licences have strengthened the refinery’s influence in the domestic market.
According to him, nearly 90% of marketers who applied for permits to import petrol this year did not receive approval.
He recommended maintaining a balance between domestic refining and controlled fuel imports to ensure supply stability.
Olatide said imports should ideally account for 20%-25% of Nigeria’s petrol supply, with the remainder sourced from local refineries.
Nigeria’s growing reliance on imported crude
Recent data from Kpler shows that Nigeria’s crude imports from the United States increased significantly in 2025.
The country imported about 41.13 million barrels from the US last year, up from 15.79 million in 2024, a 161% increase.
In July 2025 alone, the Dangote refinery imported around 590,000 barrels per day, with 60% coming from US light sweet crude and 40% from Nigerian crude grades.
Source: Getty Images
Domestic supply shortfall persists
Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that domestic refiners received 67.66 million barrels of crude between January and August 2025.
This was far below the 123.48 million barrels requested by local refineries during the period, highlighting ongoing supply challenges.
Industry analysts say these gaps, combined with global market pressures, continue to influence fuel prices across Nigeria.
Dangote refinery raises petrol price second time in days
Legit.ng earlier reported that the Dangote Refinery increased its ex-depot petrol price to N995 per litre, the second hike in days.
The adjustment, marking a N121 rise, comes days after the refinery earlier raised the price from N774 to N874 per litre.
The price pressure is linked to rising global crude oil prices, with Brent crude reaching $93.26 per barrel.
Source: Legit.ng
