The Nigerian National Petroleum Company Limited has stepped up efforts to maintain a steady supply of crude oil to the Dangote Petroleum Refinery, aiming to stabilise fuel availability nationwide, particularly as Brent crude rises to $108 per barrel.

The move comes amid increased volatility in the global oil market driven by Middle East tensions and Nigeria’s growing dependence on domestic refining to meet its petroleum product needs.

Speaking during a webinar hosted by the Major Energies Marketers Association of Nigeria, the Managing Director of NNPC Retail Limited, Hubb Stokman, said the national oil company remains pivotal in ensuring supply security through its statutory role.

“NNPC remains committed to its statutory role, of course, as supplier of last resort, making sure of the stability and continuity of supply of petroleum products across the country,” he said.

Stokman said the company is collaborating closely with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to ensure a consistent and uninterrupted supply of crude oil and refined products across the country.

“But to be very clear, the NNPC does that by working very closely with the NMDPRA and all the other relevant agencies because it is important. We’re not a regulator, but we have this role to play,” he added.

He noted that, with established supply channels including domestic production and imports where necessary, the NNPC is well positioned to sustain stable product availability.

“We’re confident that with established supply channels, both with production and imports functioning effectively in line with the Petroleum Industry Act, we can take all the necessary measures to guarantee adequate crude supply and uninterrupted availability of products nationwide. So, I think that’s the role, and that’s what we do,” he noted.

It was earlier reported that, amid rising fuel prices driven by tensions in the Middle East, the NNPC began sourcing third-party crude for the Dangote Refinery.

This followed complaints from the refinery that it was not receiving sufficient crude supplies locally to sustain operations.

As the Iran–US conflict continues to disrupt global oil supply chains, the Dangote Refinery has implemented several fuel price increases within a week, with petrol now selling above N1,200 per litre.

Defending the price increases, the Dangote Refinery said local crude suppliers have declined to supply feedstock to its facility, pushing it to rely more on imported crude.

It added that it currently receives just five cargoes monthly from the national oil company instead of the 13 it requires, noting that these supplies are still procured at international market rates.

“Furthermore, while we receive about five cargoes a month from NNPC, which we pay for in naira, these cargoes are priced at international market prices plus premium and fall short of the 13 cargoes which we require to support sales into Nigeria.

“The high crude cost is compounded by the fact that Nigeria’s upstream producers have failed to supply crude oil to the refinery as required under the Petroleum Industry Act, forcing us to source a substantial portion through international traders who charge an additional premium,” it stated.