₦airaland Forum

The Dangote Petroleum Refinery has received a new shipment of crude oil from the Federal Government, with large volumes delivered to the $20 billion Lekki-based facility as part of efforts to boost local refining.

Industry sources confirmed the deliveries on Friday, March 14, noting that increased crude supply supports domestic refining and strengthens competition in the downstream oil sector.

Meanwhile, the refinery has adjusted its loading gantry price, reducing it from N825 per litre to N815 per litre, reflecting ongoing market dynamics.

A senior official at the Nigerian National Petroleum Company Limited (NNPCL) also verified the crude shipments, emphasizing their importance in enhancing the refinery’s production capacity and reducing reliance on fuel imports.

“All cargoes have been released to Dangote Refinery, and the vessels have sailed to the refinery,” the NNPCL source stated.

A source, speaking anonymously due to a lack of authorization, confirmed that crude oil shipments intended for the Dangote Petroleum Refinery were delayed at sea last week due to uncertainties surrounding the naira-for-crude policy.

The delay coincided with a March 13 meeting of the Technical Sub-Committee on the Naira-for-Crude Policy in Abuja, where officials reviewed recent developments and reaffirmed their commitment to ensuring a steady supply of crude for domestic refining.

At the meeting, the NNPC presented a crude delivery report, detailing allocations for local refineries, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) provided updates on domestic refining activities, including the Dangote Refinery, Warri Refinery, and Port Harcourt Refinery.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also assessed crude availability for local processors.

Meanwhile, the NNPCL has entered fresh negotiations with the Dangote Refinery for the renewal of the naira-for-crude agreement, which is set to expire on March 31, 2025.

In the downstream sector, a major oil marketer, who requested anonymity, attributed the recent decline in petrol prices to intense market competition, predicting that prices could fall below N800 per litre in the near future.

“Prices of gasoline (petrol) have continued to fall and may soon go below N800. The big question is why? Many suggestions are being made as to the reason behind this phenomenon. Some suggest it is purely local refining capacity. Others suggest it’s the naira-for-crude initiative. Whatever the cause, it is a welcome relief to consumers and will simultaneously help ease the inflationary pressures in the economy,” the major oil marketer said.

“The overriding factor from my perspective is that the falling prices are a direct consequence of competition enabled by the deregulation or liberalisation of the downstream. We had often made this point in arguing in favour of this policy.

Unfortunately, many stakeholders, including labour, pushed back, allowing the country to almost go bankrupt before the policy was finally implemented. We should, however, note that prices can also go up in this deregulated environment.

“The only way to ensure that prices remain at their lowest possible level is to ensure very robust competition in the industry. This means, in particular, that no single entity should dominate the supply to the country.

Today, local refineries would prefer that there are no imports. To achieve that goal, they must continuously keep their prices low. The minute you remove that counterbalance, there will be no incentive to keep prices as low as possible. My take is that prices are being forced down because imports are still being allowed.

He also urged the NMDPRA to maintain strict oversight on fuel imports to ensure that only high-quality products enter the market.

Additionally, he emphasized the need for a balanced approach, aligning domestic consumption with local production and import volumes to maintain market stability.

“Ultimately, local refining of our crude is good for us. However, there must be an incentive for local refiners to keep their prices at the barest profitable minimum through limited and controlled imports. Local refineries also always have the option of exporting excess production to earn dollars,” he added.

PressMyButton:
Jagaban, the game changer. When the Fake news came out last week that NNPCL has halted supply of crude oil to local refineries, wailers ran with it, even when NUPRC came out to deny the fake news and set the record straight, saying a new contract is ongoing after the expiration of the present one, wailers were still on their keyboards arguing blindly and celebrating the fake news. Being a bitter person is a wreck to the soul.
Jagaban is the best t have happened to Nigeria, the decision to remove the subsidy fraud was the best ever. We now witnessing price war and we see more investors applying for license to build more refineries.
We saw Niger Republic junta came to beg Tinubu to help supply them fuel to cushion the biting fuel shortages in his country. If it were in the past, several fuel tankers would have been diverted to Niger Republic while Nigeria pay for the subsidy of the fuel being diverted and the average Nigerian would be left queuing at filling stations to buy scarce fuel.

PressMyButton:
Jagaban, the game changer. When the Fake news came out last week that NNPCL has halted supply of crude oil to local refineries, wailers ran with it, even when NUPRC came out to deny the fake news and set the record straight, saying a new contract is ongoing after the expiration of the present one, wailers were still on their keyboards arguing blindly and celebrating the fake news. Being a bitter person is a wreck to the soul.
Jagaban is the best t have happened to Nigeria, the decision to remove the subsidy fraud was the best ever. We now witnessing price war and we see more investors applying for license to build more refineries.
We saw Niger Republic junta came to beg Tinubu to help supply them fuel to cushion the biting fuel shortages in his country. If it were in the past, several fuel tankers would have been diverted to Niger Republic while Nigeria pay for the subsidy of the fuel being diverted and the average Nigerian would be left queuing at filling stations to buy scarce fuel.

internationalman:
It's a good thing and we all want good things for Nigeria.

That being said, you yourself will be surprised when they debunk this same news tomorrow

PressMyButton:
Jagaban, the game changer. When the Fake news came out last week that NNPCL has halted supply of crude oil to local refineries, wailers ran with it, even when NUPRC came out to deny the fake news and set the record straight, saying a new contract is ongoing after the expiration of the present one, wailers were still on their keyboards arguing blindly and celebrating the fake news. Being a bitter person is a wreck to the soul.
Jagaban is the best t have happened to Nigeria, the decision to remove the subsidy fraud was the best ever. We now witnessing price war and we see more investors applying for license to build more refineries.
We saw Niger Republic junta came to beg Tinubu to help supply them fuel to cushion the biting fuel shortages in his country. If it were in the past, several fuel tankers would have been diverted to Niger Republic while Nigeria pay for the subsidy of the fuel being diverted and the average Nigerian would be left queuing at filling stations to buy scarce fuel.

Meanwhile, the refinery has adjusted its loading gantry price, reducing it from N825 per litre to N815 per litre, reflecting ongoing market dynamics.

olatade:
There is something I strongly believe in, which is that Nigeria will be great again. Whether we like it or not.

Biodun556:
Good

Tinubu should not stop importation fuel pls

He should lift ban on importation of rice and other food items. Our local farmers are wicked

adalame:
B

Josegun:
G

Biodun556:
Good

Tinubu should not stop importation fuel pls

He should lift ban on importation of rice and other food items. Our local farmers are wicked

LoneSoldier:
Keep dreaming...

zero8zero:
I knew the news was a fake too. The President specifically inaugurated a Presidential committee to work out the framework for the naira for crude swap. So anybody saying NNPCL is no longer supplying local refiners is only high on Abakaliki weed.

Bobloco:
This could also be fake news. You can never tell.

PressMyButton:
Jagaban, the game changer. When the Fake news came out last week that NNPCL has halted supply of crude oil to local refineries, wailers ran with it, even when NUPRC came out to deny the fake news and set the record straight, saying a new contract is ongoing after the expiration of the present one, wailers were still on their keyboards arguing blindly and celebrating the fake news. Being a bitter person is a wreck to the soul.
Jagaban is the best t have happened to Nigeria, the decision to remove the subsidy fraud was the best ever. We now witnessing price war and we see more investors applying for license to build more refineries.
We saw Niger Republic junta came to beg Tinubu to help supply them fuel to cushion the biting fuel shortages in his country. If it were in the past, several fuel tankers would have been diverted to Niger Republic while Nigeria pay for the subsidy of the fuel being diverted and the average Nigerian would be left queuing at filling stations to buy scarce fuel.

Biodun556:
Good

Tinubu should not stop importation fuel pls

He should lift ban on importation of rice and other food items. Our local farmers are wicked

PressMyButton:
Jagaban, the game changer. When the Fake news came out last week that NNPCL has halted supply of crude oil to local refineries, wailers ran with it, even when NUPRC came out to deny the fake news and set the record straight, saying a new contract is ongoing after the expiration of the present one, wailers were still on their keyboards arguing blindly and celebrating the fake news. Being a bitter person is a wreck to the soul.
Jagaban is the best t have happened to Nigeria, the decision to remove the subsidy fraud was the best ever. We now witnessing price war and we see more investors applying for license to build more refineries.
We saw Niger Republic junta came to beg Tinubu to help supply them fuel to cushion the biting fuel shortages in his country. If it were in the past, several fuel tankers would have been diverted to Niger Republic while Nigeria pay for the subsidy of the fuel being diverted and the average Nigerian would be left queuing at filling stations to buy scarce fuel.