The Dangote Petroleum Refinery has received another batch of crude oil shipments from the Nigerian National Petroleum Company Limited (NNPCL) to support local fuel production. Sources confirmed on Friday that large volumes of crude were delivered to the $20 billion refinery in Lekki, as part of efforts to increase local refining and reduce fuel imports.
The latest crude supply comes just as Dangote Refinery lowered its petrol price from ₦825 per litre to ₦815 per litre. Fuel dealers say the downstream market is becoming more competitive, leading to price reductions. Experts believe that ensuring a steady crude supply to local refineries will increase production capacity and reduce Nigeria’s reliance on imported petrol.
NNPCL Confirms Crude Delivery
A senior official at NNPCL confirmed that the crude cargoes were successfully delivered to Dangote Refinery. The shipments, originally scheduled for last week, were delayed due to uncertainties over the naira-for-crude policy but have now reached their destination.
The crude supply follows a meeting of the Technical Sub-Committee on the Naira-for-Crude Policy in Abuja on Thursday. Officials from NNPCL, Dangote Refinery, NMDPRA, and NUPRC met to discuss domestic crude availability and refining capacity. The NNPCL presented a report on crude deliveries, while regulators reviewed local production updates for Dangote Refinery, Warri Refinery, and Port Harcourt Refinery.
NNPCL and Dangote in Talks Over Naira-for-Crude Deal
Earlier, NNPCL and Dangote Refinery began fresh talks on renewing the naira-for-crude agreement, which is set to expire on March 31, 2025. The deal allows Dangote Refinery to buy crude oil in naira instead of U.S. dollars, helping to stabilise fuel prices and reduce the pressure on Nigeria’s foreign reserves.
Petrol Prices May Fall Below ₦800
A major oil marketer explained that competition in the downstream sector is the main reason behind falling petrol prices. The marketer, who requested anonymity, predicted that pump prices may soon drop below ₦800 per litre.
He stated that there are different reasons for the price drop, including:
Increased local refining capacity
The naira-for-crude initiative
Stronger competition due to deregulation
He added that price fluctuations are normal in a deregulated market, and while prices are currently falling, they could rise again if market conditions change.
Balancing Local Refining and Fuel Imports
The marketer also stressed the need for healthy competition in the fuel supply market, warning that if local refineries dominate without competition, prices could rise again. He advised the NMDPRA to continue monitoring fuel imports, ensuring that:
Only quality fuel is imported
There is a balance between local production and imports
Consumers continue to benefit from lower prices
He further suggested that local refiners like Dangote should keep their prices competitive and, when necessary, export excess production to earn foreign exchange.
What This Means for Nigerians
With more crude oil supply to Dangote Refinery and ongoing competition in the downstream sector, Nigerians could see further petrol price reductions in the coming weeks. However, fuel prices could still change depending on global oil trends, exchange rates, and government policies.
For now, the increased refining capacity and falling petrol prices offer hope for lower transportation costs and reduced inflation, bringing some relief to consumers.
