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The Digest:

The Nigerian National Petroleum Company Limited will increase crude allocation to the Dangote refinery to seven cargoes in May, up from five cargoes allocated in previous months. A top source at the national oil company confirmed the development, noting efforts to boost supply to the 650,000-barrel-per-day refinery. The refinery's CEO had earlier stated that the plant was expected to receive 13 to 15 cargoes monthly under the crude-for-naira programme, but was currently receiving only five. Higher allocations could limit Nigerian crude available for export amid Middle East supply disruptions.

Key Point:
  • NNPC will allocate seven crude cargoes to Dangote refinery in May, up from five.
  • The refinery expects 13 to 15 cargoes monthly under the crude-for-naira programme.
  • Higher local allocations could reduce the amount of Nigerian crude available for export.
  • NNPC cargoes are cheaper for the refinery due to lower shipping costs.
  • The refinery recently reduced its ex-gantry petrol price to N1,200 per litre.
As NNPC gradually increases crude supply to the Dangote refinery, the move aims to boost local refining capacity, though it remains below the volumes needed for optimal operations.

Sources: The Cable, Channels TV