NNPC Increases Strategic Crude Allocations to Dangote Refinery for May to Mitigate Regional Fuel Price Surges Amid Middle East Conflict

NNPC raises crude allocation to Dangote Refinery to 7 cargoes for May to combat fuel price hikes caused by Middle East instability and high import premiums.

By: AXL Media

Published: Apr 1, 2026, 4:48 AM EDT

Source: The information in this article was sourced from LEADERSHIP News

Strengthening Domestic Energy Security Amid Global Geopolitical Instability

The Nigerian National Petroleum Company Limited has taken a significant step toward stabilizing the country’s energy sector by increasing its direct crude oil supply to the 650,000 barrel-per-day Dangote Refinery. For the month of May, the NNPCL has allocated seven crude cargoes to the facility, up from the average of five cargoes provided in previous months. This decision comes as the ongoing conflict in the Middle East—specifically involving Iran—has caused a severe disruption in global supply chains, pushing Brent crude benchmarks to nearly $137 a barrel. By sourcing more crude locally, the refinery can bypass the exorbitant shipping costs and war-driven premiums currently affecting the international market.

Reducing Reliance on High-Premium International Imports

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Until this recent adjustment, the Dangote Refinery was sourcing only about five of its required 13–15 monthly cargoes locally. This forced the facility to turn to the international market, where premiums have reached as high as $18 per barrel over the Brent benchmark. A senior official at the refinery noted that while the new allocation of seven cargoes does not yet meet the full operational capacity of the plant, it serves as a critical buffer against the pricing volatility dictated by the Middle East war. Negotiations are currently ongoing between the refinery and the NNPCL to further increase these volumes in the coming months.

Impact on Nigeria’s Gasoline Supply and Pricing