The Nigerian National Petroleum Company (NNPC) Limited has increased crude oil allocation to the Dangote refinery, raising it to seven cargoes for May from the five previously supplied in recent months.
A senior source within the national oil firm confirmed the development on Wednesday, noting that the move is part of efforts to ramp up supply to the refinery.
Earlier, on March 25, Dangote refinery CEO, David Bird, disclosed that the facility requires between 13 and 15 crude cargoes monthly under the crude-for-naira arrangement but has only been receiving five.
However, the latest adjustment signals a gradual increase, with allocations now set to rise to seven cargoes in May.
“We are focused on increasing crude oil supply to Dangote,” the source stated.
A Reuters report on Tuesday indicated that the higher allocation could reduce Nigeria’s crude available for export, especially amid supply disruptions in the Middle East due to the Iran war, which has pushed global buyers to seek alternative sources.
A senior official at the refinery also confirmed the development, saying, “NNPC has allocated more cargoes to Dangote for May. While this will not completely meet our demands, it is a step forward. We are also in talks with NNPC for additional volumes.”
The report added that sourcing crude locally from NNPC remains cost-effective for the refinery due to lower shipping expenses.
Meanwhile, on March 26, the Dangote refinery reduced its ex-gantry petrol price to N1,200 per litre, reflecting ongoing adjustments in its operations and supply chain.
