ABUJA — The Federal Government, through NNPC, has begun sourcing third-party crude for Dangote refinery through international traders to sustain domestic refining operations, The PUNCH has learnt. Officials, however, warned the intervention may not immediately lower petrol prices. Nigerians currently grapple with costs exceeding N1,000 per litre following three price hikes within a week.
“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” a senior NNPC official told The PUNCH. The refinery receives only five cargoes monthly from NNPC instead of the 13 required under the naira-for-crude policy, forcing reliance on imported crude priced at international market rates.
Industry stakeholders note that global tensions, particularly the Iran-US conflict pushing Brent above $92 per barrel, have disrupted supply chains. Eche Idoko of CORAN warned: “As long as the refinery sources the majority of its feedstock from the United States and must bypass the Strait of Hormuz, they will transfer the cost to Nigerian customers.”
Despite pressures, analysts say Dangote’s operations have cushioned Nigeria from severe spikes. “If the refinery was not operating, petrol prices could easily have reached N1,500 per litre,” said Jeremiah Olatide of Petroleumprice.ng. The refinery has expanded marketing partners to over 30 companies, broadening distribution access amid challenging supply conditions.
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