The Federal Government, through the Nigerian National Petroleum Company Limited (NNPC), is exploring the option of sourcing crude oil from international traders to supply the Dangote Petroleum Refinery in a bid to sustain domestic refining operations.
Industry officials, however, said the move may not immediately lead to lower petrol prices, as Nigerians continue to grapple with rising fuel costs following recent price adjustments by the $20bn Lekki-based refinery.
Oil dealers confirmed that the refinery recently suspended the loading of Premium Motor Spirit (petrol), fuelling concerns that another increase in petrol prices could occur. Gantry prices have already risen from N774 to N995 per litre, with pump prices in several states exceeding N1,000 per litre.
Analysts attribute the rising costs partly to global crude price increases driven by geopolitical tensions in the Middle East, particularly around the Strait of Hormuz, a key oil transit route. Brent crude has recently climbed above $92 per barrel.
NNPC officials said the company is leveraging its global trading network to secure third-party crude supplies for the Dangote refinery at competitive international rates to support continued production.
The refinery currently receives about five crude cargoes monthly from NNPC under the naira-for-crude arrangement, far below the 13 cargoes required to meet its operational needs, forcing it to rely partly on imported crude.
Energy analysts note that while expanding crude supply to domestic refineries could help stabilise petrol prices, global market volatility and the high cost of imported crude may continue to influence fuel prices in Nigeria.
