The Dangote Petroleum Refinery has received additional crude oil supply from the Federal Government as it was gathered on Friday that large volumes of crude oil shipments were being delivered to the plant as part of efforts to promote local refining.
The supply comes amidst a fresh price reduction at the refinery loading gantry from N825 per litre to N815 per litre. Dealers confirmed the development, stating that the competition in the downstream oil sector had become fierce.
They also noted that the supply of crude oil to Dangote refinery highlights the crucial role of supporting local refining efforts and contributes significantly to domestic refineries’ operations, boosting their production capacities.
A highly-placed source at the Nigerian National Petroleum Company Limited, who confirmed the delivery on Friday, said the crude oil vessels had sailed to the $20bn Lekki-based plant.
“All cargoes have been released to Dangote Refinery, and the vessels have sailed to the refinery,” the NNPCL insider familiar with the development stated in a chat. The source spoke in confidence due to the lack of authorisation to speak with the media.
Another source noted that the cargoes, originally scheduled for delivery last week, were delayed and remained at sea due to uncertainties surrounding the naira-for-crude deal at that time.
Officials of the refinery had yet to respond to enquiries on the matter till this report was filed on Friday.
Earlier, The PUNCH reported that the Nigerian National Petroleum Company Limited initiated fresh negotiations with the Dangote Petroleum Refinery over the renewal of the naira-for-crude agreement, as talks are underway in anticipation of the expiration of the initial deal, which ends on March 31, 2025.
Meanwhile, a major marketer has explained that the stiff competition among the many stakeholders in the downstream oil sector is the primary reason for the ongoing decline in the pump prices of petrol.
The official, who declined to be named, said the pricing competition will lead to a continuous fall of petrol below N800 per litre.
The major oil dealer said, “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.
(PUNCH)
