The Nigerian National Petroleum Company (NNPC) has allocated seven crude cargoes to the Dangote Refinery for May, up from five in previous months.
The move comes at a time when Africa’s largest refinery, the 650,000 barrels-per-day Dangote plant, has struggled to secure enough domestic crude to operate optimally. Currently, the plant must import a large portion of its feedstock, as it requires 13 to 15 cargoes per month.
This supply gap has exposed the refinery to rising global prices, particularly as supply disruptions caused by the conflict in the Middle East have reduced regional exports and increased competition for available crude. 
A senior refinery official stated that while the additional NNPC volumes provide some relief, they still fall short of total demand. Discussions to secure further supplies are reportedly ongoing.
READ ALSO: 5 African Countries Receiving Petroleum Exports from Dangote Refinery
Due to lower logistics costs, the refinery can obtain crude at a much lower cost by sourcing locally. The refinery recently paid premiums of up to $18 per barrel above Brent crude to secure cargoes from the international market, indicating the rising cost of imports.
Domestic fuel prices are being impacted by the increased cost of crude. Nigerian petrol prices have reached all-time highs in recent weeks due to supply constraints as well as pressures on the world oil market.
The Dangote refinery has increased its petrol supply to the local market, now meeting slightly more than two-thirds of Nigeria’s estimated daily demand of 60 million litres.
An increase in crude allocations to the refinery could reduce the amount of Nigerian oil available for export, potentially tightening global supply even further at a time when buyers are already looking for alternatives to Middle Eastern crude.
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