The Nigerian National Petroleum Company Limited (NNPCL) has supplied 30 million barrels of crude oil to the Dangote Refinery and is set to deliver an additional 17 million barrels by October.
This announcement was made by NNPC spokesperson, Segun, during an interview on Arise Television, where he explained that the crude oil supply is part of the Federal Government’s strategy to sell oil to local refineries.
Segun disclosed that 6.3 million barrels will be delivered in September, with 11.3 million barrels slated for October. The September delivery will be transported in seven cargoes. However, he raised concerns over the current pump price of petrol, noting that it does not reflect true market conditions.
“The pump price today is not market reflective. NNPCL remains the sole importer of Premium Motor Spirit (PMS) in the country, which is abnormal. Ideally, market forces should determine prices,” Segun said. He emphasised that NNPC’s role as the sole importer was not by choice but a reaction to market realities, where other players have scaled back their participation.
He further explained that achieving price stability for fuel requires a more liquid foreign exchange market and perfect market conditions. “Market conditions need to be perfect, and there needs to be FX liquidity,” Segun added.
NNPC has been collaborating with private refineries, including the Dangote Refinery, to ensure a steady supply of crude for processing. According to NNPC spokesperson Olufemi Soneye, once Dangote refinery begins producing PMS and NNPC starts lifting the product, further details will be communicated.
A presidency source, speaking anonymously, confirmed that Dangote, not the NNPC, will set the price for its products based on market conditions. The source also disclosed that the Federal Government has instructed NNPC to sell crude to Dangote in naira to ease foreign exchange pressure.
“The Federal Government has already intervened by asking NNPC to sell crude to Dangote in naira. So far, 30 million barrels have been supplied, and an additional 17.8 million barrels will be delivered between now and October,” the source said.
The source clarified that while the government would not dictate prices to Dangote, it would ensure that no undue advantage is taken over Nigerians. “The government’s role is to ensure product quality and prevent arbitrary pricing,” the source added.
Minister of Petroleum Resources, Heineken Lokpobiri, after a meeting with Vice President Kashim Shettima and other key officials, expressed optimism that fuel would be available across the country by the weekend. He urged Nigerians not to panic-buy, reassuring that the sector is deregulated and prices will stabilise once supply increases.
“There are enough products in the country to meet demand, and we believe that availability will stabilise prices,” Lokpobiri said.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) also highlighted efforts to extend operating hours at depots and expedite vessel clearance, with a focus on boosting supply from local refineries to stabilise fuel prices across the country.
