Lower Petrol Prices Expected as Dangote Refinery Boosts Crude Import, Moves to Attain Full Capacity

• While the naira-for-crude renegotiations are still ongoing, Dangote Refinery is not slacking
• The company has gone ahead to source more crude oil from international suppliers to ramp up production
• Industry analysts suggest that the refinery might be looking as far as Libya and the Meditteranean

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Dangote Refinery and Petrochemical Company has boosted its crude imports, sourcing crude oil from multiple international suppliers to boost its production and attain full capacity.

This is even with the fresh naira-for-crude negotiations going on with the Nigerian National Petroleum Company Limited (NNPCL), as the first six-month agreement comes to an end in three weeks.

Reports show that the refinery has recently sourced crude oil from suppliers in Angola, the United States of America, and Algeria.

In March alone, over 3 million barrels of American crude oil have been received, in addition to significant quantities also received from Algeria and Angola, Bloomberg reports.

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Dangote Refinery sources crude from other countries

Earlier reports from Legit.ng already showed that Dangote Refinery was set to import crude oil after constructing huge storage facilities in January 2025.

Analysts at Energy Aspects Ltd disclosed that the Dangote Refinery has upped its average crude delivery in March to about 450,000 barrels daily, compared to the 380,000 barrels received daily in the first two months of the year.

At this rate, the refinery is likely to attain its full capacity of 650,000 barrels soon and take its place as the largest refinery in Africa.

Already, the facility has cut down fuel imports into Nigeria with its production and ended monopoly in the sector.

At full capacity, experts expect the refinery to further slash the prices of fuel, diesel and others.

With the landing cost of imported petrol also dropping, it is only a matter of time before fuel prices push even lower.

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Naira-for-crude deal still in place as NNPCL sells 84 million barrels to Dangote Refinery

Dangote Refinery is still buying local crude

Despite the huge crude imports, the Dangote Refinery is still sourcing the bulk of its crude locally. The Bloomberg Tanker tracking data shows ten million barrels of crude sourced locally in February 2025.

The NNPCL also released a statement showing that it had sold 48 million barrels of crude to Dangote Refinery since the naira-for-crude deal commenced in October 2024.

Reports say that the refinery is looking out for competitive deals and terms and will continue to explore other alternatives, including Libya, the North Sea and the Mediterranean.

Ronan Hodgson, an energy analyst, told Channels TV that the WTI could also be an attractive grade for the refinery because of its light-sweet nature and price competitiveness with local West African grades.

Lower fuel prices expected as crude prices crash

In related news, the recent crash in crude prices in the international market is driving up optimism that fuel prices could go lower.

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Fuel cost to crash as importers begin negotiating reduction amid Dangote, NNPC price war

With crude prices dropping, the landing cost of imported petrol will drop further, forcing the Dangote Refinery and NNPCL to slash prices further to stay in business.

In the international market, the prices of both the Brent Crude and Bonny light are dropping. Recent reports show that Brent crude has gone down to $63 per barrel.

Source: Legit.ng