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Nigeria may be edging closer to fuel price stability as the Nigerian National Petroleum Company Limited (NNPCL) ramps up crude oil allocation to the Dangote Petroleum Refinery, increasing supply to seven cargoes for May—up from five in previous months.
The strategic move comes at a critical time when global fuel prices are soaring, driven by supply disruptions linked to the escalating conflict involving Iran, which has tightened crude availability across the Middle East and intensified competition among global buyers.
Industry watchers say the increased allocation is a calculated step to strengthen domestic refining capacity and cushion the impact of rising international prices on Nigeria’s volatile fuel market.
With a massive refining capacity of 650,000 barrels per day, the Dangote Refinery—Africa’s largest—has been positioned as a game-changer for Nigeria’s long-standing dependence on imported petroleum products.
A senior official at the refinery confirmed the development, noting that while the additional cargoes may not fully meet operational demands, they represent a significant boost.
“NNPC has allocated more cargoes to Dangote for May. While this will not completely meet our requirements, it will certainly help improve output,” the official told Reuters.
The development is expected to enhance local fuel production, ease supply pressures, and potentially moderate pump prices if sustained.
As global oil dynamics remain unpredictable, stakeholders say consistent crude supply to domestic refineries could be Nigeria’s strongest buffer against external shocks—offering hope to millions of consumers grappling with rising energy costs.
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