By Our Correspondent
The Federal Government, through the Nigerian National Petroleum Company Limited (NNPC), is exploring plans to secure foreign crude oil supplies for the Dangote Petroleum Refinery in Lagos as Nigeria grapples with rising fuel prices and supply pressures.
Industry sources disclosed that NNPC may leverage international oil traders to provide crude for the $20bn refinery located in Lekki.
The move aims to sustain domestic refining and stabilise the fuel market as petrol prices continue to climb across the country.
However, energy experts warn that sourcing foreign crude may not immediately reduce petrol prices.
Nigerians are already facing increased fuel costs after recent price adjustments pushed gantry prices from N774 to about N995 per litre.
In several cities, retail pump prices now exceed N1,000 per litre, with some filling stations selling petrol for as high as N1,200 per litre.
The situation has been complicated by reports that the Dangote refinery temporarily halted the loading of Premium Motor Spirit (PMS), sparking fears of another potential fuel price hike.
Analysts say global oil market volatility is also influencing Nigeria’s fuel pricing.
Rising geopolitical tensions, particularly involving Iran and the United States, have disrupted global oil supply chains and pushed Brent crude prices above $92 per barrel.
The strategic Strait of Hormuz, a major global oil shipping route, has become a focal point of concern for energy markets.
NNPC officials confirmed that the national oil company is using its global trading network to source crude at competitive international rates.
According to the company, the initiative is part of efforts to support local refining capacity and ensure energy security for Nigeria.
Despite this intervention, the Dangote refinery has indicated that imported crude purchases could maintain high production costs.
The facility currently receives about five crude cargoes monthly from NNPC under the naira-for-crude arrangement, far below the roughly 13 cargoes required to operate optimally.
Industry stakeholders say increased domestic crude allocation could help stabilise fuel prices.
They also recommend expanding the naira-for-crude policy to other local refineries to encourage competition and strengthen Nigeria’s energy independence.
Market data shows Nigeria’s reliance on foreign crude has grown significantly.
Crude imports from the United States surged to over 41 million barrels in 2025, reflecting the country’s efforts to meet refinery feedstock demand amid local supply shortages.
