NNPC Boosts Crude Supply to Dangote Refinery to Address Rising Fuel Prices

NNPC Boosts Crude Supply to Dangote Refinery to Address Rising Fuel Prices

The Nigerian National Petroleum Company Limited (NNPC) has raised the allocation of crude oil cargoes to the Dangote Petroleum Refinery from five to seven cargoes for May 2026, a strategic move aimed at strengthening domestic fuel production and reducing Nigeria’s dependence on imported crude amid rising petrol prices.

According to Reuters, two trade sources and a senior refinery official confirmed the development. “NNPC has allocated more cargoes to Dangote Refinery for May. While this will not completely meet our demands, it can help. We are also in negotiation with NNPC for additional volumes,” the official said.

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For April 2026, the refinery will continue to receive the five cargoes previously allocated, as the increase only takes effect in May. Dangote Refinery CEO, David Bird, had earlier stated that the plant typically requires 13 to 15 cargoes per month under the crude-for-naira programme, but currently receives only five. The shortfall has forced the refinery to import additional crude at premiums of up to $18 per barrel above Brent crude prices, driven by global market disruptions, including the ongoing Iran-US-Israel conflict.

The refinery, which has a production capacity of 650,000 barrels per day, has been increasing gasoline supplies to Nigeria’s domestic market, currently meeting over two-thirds of daily petrol demand, roughly 60 million litres. However, the limited crude supply has exposed the refinery to global price volatility, prompting multiple ex-gantry price adjustments in March 2026 — from ₦774 to ₦1,275 per litre, before settling at ₦1,200 per litre.

Analysts say the increased allocation of crude cargoes will help ease the pressure on domestic petrol prices and provide a buffer against international crude market fluctuations, but the refinery still relies partly on imports to meet its full operational capacity. The move underscores NNPC’s commitment to supporting local refining capacity and ensuring energy security in Nigeria.

NNPC Boosts Crude Supply to Dangote Refinery to Address Rising Fuel Prices