The Federal Government, through the Nigerian National Petroleum Company Limited (NNPCL), has begun efforts to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders in order to sustain domestic refining operations.
Officials, however, cautioned that the move may not immediately lead to a reduction in petrol prices, as Nigerians continue to face rising fuel costs following recent increases by the Lekki-based refinery.
Industry players and oil dealers confirmed that the refinery recently suspended the loading of Premium Motor Spirit (PMS), popularly known as petrol, a development that has raised concerns about the possibility of another price increase.
If implemented, it would mark the third increase in petrol prices within a week, after earlier adjustments pushed gantry prices from N774 to about N995 per litre. As a result, pump prices in several states have climbed above N1,000 per litre, with some filling stations selling petrol for as much as N1,200 per litre.
Recent market data also shows a change in Nigeria’s crude sourcing pattern. Analytics indicate that Nigeria’s crude imports from the United States rose to about 41.13 million barrels in 2025, representing a 161 per cent increase from 15.79 million barrels recorded in 2024.
Motorists and industry observers are already bracing for the likely impact of rising fuel prices on transportation costs and the prices of goods and services. The temporary suspension of petrol loading at the refinery, the second time within a week, highlights ongoing logistical challenges in maintaining steady domestic supply, particularly amid volatility in the global crude market.
Analysts say stabilising fuel prices will largely depend on reliable crude oil allocation to local refineries.
Global developments, especially tensions in the Middle East involving Iran and the United States, have also disrupted oil supply chains and pushed Brent crude prices above $92 per barrel. Concerns surrounding the Strait of Hormuz, a critical route for global energy shipments, have further intensified the situation, making crude supply more expensive for refiners that rely on international sources.
Industry sources confirmed that NNPCL is using its global crude trading network to secure third-party crude supply for the Dangote refinery at competitive international market rates as part of efforts to maintain operations.
The refinery, however, noted that sourcing crude from the international market may not immediately bring down pump prices because global energy costs have risen significantly due to the ongoing geopolitical tensions.
The facility also pointed to limitations in domestic crude supply, explaining that it currently receives about five cargoes of crude monthly from NNPCL, far below the 13 cargoes required under the naira-for-crude policy. As a result, the refinery has had to rely on imported crude purchased at international market rates.
Industry stakeholders maintain that increased domestic refining capacity could help stabilise petrol prices if local crude supply improves. However, they warn that dependence on imported crude and continued global tensions may keep fuel prices elevated for the time being.
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