The Federal Government, through the Nigerian National Petroleum Company Limited, is making moves to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders in order to sustain domestic refining operations.
Officials, however, say the intervention may not immediately lead to a reduction in petrol prices as Nigerians continue to grapple with rising fuel costs.
Industry sources revealed that the Dangote refinery recently suspended the loading of Premium Motor Spirit, a development that has raised concerns about another possible increase in petrol prices.
The suspension came after recent price adjustments pushed gantry prices from about N774 to N995 per litre, with retail prices in several states now exceeding N1,000 per litre and in some areas reaching about N1,200 per litre.
Analysts say the situation has been worsened by global crude market volatility and geopolitical tensions in the Middle East, particularly the conflict involving Iran and the United States, which has pushed Brent crude prices above $92 per barrel.
An official of the national oil company said the NNPC is leveraging its global trading network to source third-party crude for the Dangote refinery at competitive international market rates to ensure continued refining operations.
The Dangote refinery, however, noted that sourcing crude from international markets may not immediately reduce pump prices because global energy prices have been affected by the ongoing Middle East crisis.
The refinery also stated that it currently receives about five cargoes of crude oil monthly from NNPC, which is far below the 13 cargoes required under the naira-for-crude policy.
Industry stakeholders say fully implementing the policy and increasing crude supply to domestic refineries could help moderate petrol prices in Nigeria.
Energy analysts also noted that despite the rising fuel prices, the operation of the Dangote refinery has helped prevent petrol prices from climbing even higher amid the current global energy crisis.