Dangote Refinery Disputes Reports of Seven Cargo Crude Allocation for May

Officials clarify refinery is set to receive six cargoes, amid ongoing crude supply challenges and rising fuel prices.

📚 Get "Spend Less, Save More" — Click here

By Michael Bamidele | Lagos, Nigeria

Dangote Petroleum Refinery has disputed reports that it was allocated seven crude cargoes for May by the Nigerian National Petroleum Company Limited (NNPC). Senior officials said the refinery is scheduled to receive six cargoes, highlighting ongoing challenges in securing sufficient crude for its 650,000-barrel-per-day facility.

Refinery Clarifies Crude Allocation
Speaking exclusively to our correspondent, unnamed Dangote Group officials said they were unaware of any increase in allocation from five to seven cargoes. “Our May allocation is about 6.15 million barrels. The report of seven cargoes is not clear yet,” one official said.

The refinery requires nearly 20 cargoes monthly to operate at full capacity but continues to struggle with inadequate local crude supply. Historical monthly allocations reveal persistent shortfalls: 4.55 million barrels in October, 6.45 million in November, 4.30 million in December, 5.65 million in January, 4.66 million in February, and approximately six million barrels in March.

Impact on Fuel Prices
The shortfall in domestic crude supply has forced the Dangote refinery to rely on imported crude, contributing to rising fuel prices, with pump prices now exceeding N1,200 per litre. In statements, the refinery cited local producers’ refusal to supply feedstock and the limited allocation from NNPC—five cargoes monthly instead of the 13 required for domestic sales.

📚 Get "Spend Less, Save More" — Click here

“While we receive about five cargoes a month from NNPC, priced at international market rates plus a premium, this is insufficient to meet domestic demand,” an official explained.

NNPC’s Response and Ongoing Support
Sources within NNPC confirmed efforts to increase crude supply to the refinery, leveraging global trading networks to source third-party crude at competitive international prices. “NNPC remains fully committed to supporting domestic refining, including Dangote Petroleum Refinery, even amid temporary availability constraints,” a senior NNPC official said.

Calls for Government Intervention
Economic experts have advised the Federal Government to consider selling crude to the refinery at a fixed price to mitigate the impact of global oil disruptions on domestic fuel costs. Economist Bismarck Rewane noted, “The government could stabilize refined product prices by offering crude at a controlled rate to Dangote, preventing further inflation.”

Global Significance
The Dangote refinery is increasingly central to global petroleum supply, particularly for aviation fuel and diesel, both currently in high demand and costly due to geopolitical tensions, including the ongoing Iran-US conflict and the closure of the Strait of Hormuz.