Rising fuel prices: NNPC may supply foreign crude to Dangote refinery

 

The Federal Government, through the Nigerian National Petroleum Company Limited, has begun moves to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders, in a bid to sustain domestic refining operations, The PUNCH has learnt.

Officials, however, warned that the intervention may not immediately translate into lower petrol prices for consumers. Nigerians currently grapple with high fuel prices, following the recent hikes in the cost of the commodities by the $20bn Lekki-based refinery.

Oil dealers and industry players confirmed to one of our correspondents that the refinery temporarily suspended the loading of Premium Motor Spirit (petrol), a development that heightened speculation that another fuel price increase could be imminent.

This would mean the third surge in petrol prices within a week, following adjustments that pushed gantry prices from N774 to N995 per litre. As a result, retail pump prices in several states now exceed N1,000 per litre, as some stations now dispense petrol at about N1,200/litre, intensifying economic pressures on Nigerians.

This comes as recent market data illustrates the shift in crude sourcing patterns. Kpler analytics show that crude imports by Nigeria from the United States surged to 41.13 million barrels in 2025, up 161 per cent from 15.79 million barrels in 2024.

Amid the fuel price hike in Nigeria, motorists and industry observers are bracing for the impact on transport fares and the cost of goods. The refinery’s temporary halt in PMS loading, the second within a week, reflects logistical challenges in sustaining domestic supply, particularly given global crude market volatility. Analysts note that stabilising prices depends heavily on reliable crude allocation to domestic refineries.

One critical factor is the geopolitical crisis in the Middle East, especially the Iran-US conflict, which has disrupted oil supply chains and pushed Brent crude prices above $92 per barrel. Tensions around the Strait of Hormuz, a vital energy transit corridor, have compounded the global price surge. The disruption has made it costly and difficult for refiners relying solely on local crude.