FG MOVES TO SECURE ALTERNATIVE CRUDE SUPPLY FOR DANGOTE REFINERY AMID RISING PETROL PRICES

Fresh efforts are underway by the Federal Government to sustain domestic refining operations as authorities explore alternative crude oil supply channels for the Dangote Petroleum Refinery.

The intervention is being coordinated through the Nigerian National Petroleum Company Limited, which is reportedly engaging international crude traders to provide additional supply to the refinery located in Lekki, Lagos State.

Industry officials, however, indicated that the move may not immediately lead to a reduction in petrol prices as Nigerians continue to grapple with rising fuel costs following recent price adjustments by the refinery.

Market sources disclosed that the refinery recently suspended the loading of Premium Motor Spirit, also known as petrol, a development that triggered speculation of another possible price increase.

Recent pricing changes have already pushed the refinerys gantry price from about N774 to N995 per litre within a short period. As a result of the adjustments, retail pump prices in several states have climbed above N1,000 per litre, with some filling stations reportedly selling petrol for about N1,200 per litre.

Market data has also shown a shift in Nigerias crude sourcing patterns in recent months. Statistics released by global energy analytics firm Kpler revealed that Nigerias crude imports from the United States increased to 41.13 million barrels in 2025, compared with 15.79 million barrels recorded in 2024.

With fuel prices rising, motorists and business operators across Nigeria have expressed concern about the possible impact on transportation costs and the prices of goods and services.

Energy analysts have also linked the situation to volatility in the international crude oil market. Tensions in the Middle East, particularly the confrontation involving Iran and the United States, have disrupted global oil supply chains and pushed the price of Brent crude above 92 dollars per barrel. Concerns have also been raised about the security of the Strait of Hormuz, a major global energy shipping route.

Officials familiar with the arrangement explained that the national oil company is relying on its global trading network to secure third-party crude supplies for the refinery at competitive international prices. One senior official, who spoke on condition of anonymity, said the company remains committed to supporting domestic refining and strengthening Nigerias energy security.

Sources within the refinery indicated that importing crude oil may not immediately reduce petrol prices because international energy prices have risen sharply. The refinery also attributed part of the challenge to limited domestic crude supply, noting that it currently receives about five cargoes per month from NNPC. This allocation falls short of the 13 cargoes required under the naira-for-crude policy to sustain full production and meet local fuel demand. According to refinery officials, the limited allocation has forced the facility to rely partly on imported crude purchased at international market rates.