Naija National Petroleum Company Limited don increase wetin dem dey give Dangote refinery for crude oil. Dem don move from five cargoes to seven for May loading. But dis one no mean say fuel price go come down quick quick.
Two traders wey dey follow Reuters yarn say dis new arrangement na to help boost local fuel production. But even with dis increase, Dangote refinery still dey suffer. Dem need about 13 to 15 cargoes every month to work well, but dem dey get only seven. Na serious shortage.
One senior NNPC officer wey no want make we mention im name talk say dem dey use their global network to find third-party crude for Dangote refinery. “We dey source third-party crude for the refinery at prices wey dey compete with international market,” the officer yarn. Im add say as national oil company, dem dey fully committed to support local refining.
Meanwhile, fuel price for Naija don reach record high. Petrol dey sell for around ₦1,300 per litre, up from ₦774 wey people dey pay before. Even though Dangote refinery don increase wetin dem dey supply for local market, dem still no dey meet up to two-thirds of wetin Naija need every day.
Because of dis high cost, Dangote refinery don increase their depot price by about 13 percent. Na dis one dey make price for downstream sector dey rise more. Marketers don pause fresh pricing for petrol and diesel as dem dey wait for Dangote refinery to review their own price.
More than 70 percent of depots for Lagos, Port Harcourt, and Calabar don suspend new pricing. Only Warri dey show small activity. Traders dey hold back to avoid loss if Dangote refinery increase price.
Loading activities for Dangote refinery don slow down. No new loading tickets dey issued now. Only old tickets dem dey honour. Dis one don limit fresh supply wey dey enter market.
One energy expert, Idoko, talk say Naija local refineries wey depend on imported crude dey face serious cost pressure. Global prices don rise because of war for Middle East between Iran and US-backed Israel. Im say Naija refineries dey vulnerable to international market volatility, and dis one no good for oil-producing country.
Dangote refinery don even start to export aviation fuel to United Kingdom. One cargo from Dangote refinery don arrive Milford Haven for UK. European countries dey buy jet fuel from Dangote refinery because Middle East supply don tight.
Alhaji Aliko Dangote, President of Dangote Group, tell Al Jazeera say dem almost don sell out their jet fuel and diesel. “Today, we have almost sold out our jet fuel. We have almost sold out our gas oil. What we have is just the gasoline,” im talk.
Dis export to UK na because Middle East dey face serious disruption. Strait of Hormuz wey Europe dey use get about 40 percent of their jet fuel don nearly shut completely. Na dis one push European buyers to look for West Africa and United States.
Matt Stanley from Kpler talk say, “The system doesn’t stop — it reshuffles. It’s really a story of rerouting and price adjusting, rather than an outright shortage.”
Janiv Shah from Rystad Energy warn say airlines fit begin to feel the impact by end of April if supply constraints continue. “Market understanding is that fuel shortages are not far away in some countries,” im talk.
Back to Naija, NNPC decision to increase crude allocation to Dangote refinery fit affect Naija crude export volumes. If dem divert more crude to domestic refining, wetin dey available for export go reduce. International buyers fit look for alternative sources.
Dangote refinery wey start operation for 2024 suppose reduce Naija dependence on imported petroleum products. But challenges around crude supply, pricing, and logistics still dey shape wetin dem dey do. Increasing domestic crude allocation remain critical to achieve energy security and stabilise fuel prices.
Industry sources talk say sustained supply at required volumes go be key to unlock refinery full potential. Dem say dis one go deliver long-term benefits to Naija economy.
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