Dangote Refinery Disputes Seven Cargo Allocation Reports

Dangote Petroleum Refinery has disputed reports claiming it will receive seven cargo allocations of crude oil from the Nigerian National Petroleum Company (NNPC) in May, clarifying that it expects only six cargoes. A senior official from the refinery indicated that the facility requires 19 cargoes monthly to operate efficiently, yet it has only been receiving five cargoes.

This supply issue is compounded by the ongoing disruptions in global oil supply due to geopolitical tensions, including the Iran-U.S. conflict. The refinery's struggles have led to increased fuel prices, with petrol pump prices exceeding N1,200 per liter.

The NNPC has been working to enhance crude supply to the refinery, but constraints remain. The refinery has called for more local crude supply to avoid reliance on imports.

Economic expert Bismarck Rewane noted that the federal government is exploring options to stabilize fuel prices and ensure they do not trigger inflation, emphasizing the need for a fixed price for crude sales to the refinery.