The Nigerian National Petroleum Company Limited has intensified efforts to ensure a steady supply of crude oil to the Dangote Petroleum Refinery in a bid to stabilise fuel availability across Nigeria.
This development comes as global oil prices surge, with Brent crude climbing above $108 per barrel amid ongoing tensions in the Middle East, raising concerns over supply disruptions and fuel price volatility.
Speaking during a webinar hosted by the Major Energies Marketers Association of Nigeria, the Managing Director of NNPC Retail Limited, Hubb Stokman, reaffirmed the company’s commitment to ensuring nationwide fuel supply stability.
“NNPC remains committed to its statutory role as supplier of last resort, ensuring stability and continuity of petroleum products across the country,” he said.
Stokman explained that the company is working closely with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to guarantee uninterrupted supply of crude and refined products.
He noted that with a combination of domestic production and imports, aligned with the Petroleum Industry Act, the company is confident of maintaining adequate supply nationwide.
The renewed push follows earlier reports that the NNPC had begun sourcing third-party crude oil for the Dangote refinery, amid concerns over insufficient local supply.
The refinery had raised alarm over limited access to crude feedstock, stating it receives only about five cargoes monthly from NNPC, far below the 13 cargoes required to meet its operational capacity. It added that the crude supplied is priced at international market rates plus a premium.
As a result, the facility has increasingly turned to imported crude, contributing to rising fuel prices. Petrol pump prices have reportedly exceeded N1,200 per litre following multiple hikes within a week.
Industry sources confirmed that NNPC is leveraging its global trading network to secure additional crude supplies for the 650,000-barrel-per-day refinery. The crude is expected to be sold at competitive international rates, rather than subsidised domestic pricing.
Officials also disclosed that part of the supply shortfall stems from previously front-sold crude volumes, which have temporarily constrained available output.
Despite these challenges, NNPC reiterated its commitment to supporting domestic refining and ensuring energy security, noting that existing agreements with the Dangote refinery will continue to be honoured.
The push to strengthen crude supply comes as Nigeria increasingly relies on local refining capacity to reduce dependence on imports and stabilise the downstream sector.
Meanwhile, global oil markets remain under pressure as geopolitical tensions—particularly around the Strait of Hormuz—continue to disrupt supply routes. Brent crude has risen sharply, widening its price gap with US West Texas Intermediate, which remains relatively insulated due to stable domestic production in the United States.
Analysts warn that sustained disruptions in the Middle East could further tighten global supply, intensify price pressures, and pose additional challenges for energy-dependent economies like Nigeria.
