Nigeria allocates more crude cargoes to Dangote refinery for May

The Nigerian National Petroleum Company (NNPC) has allocated seven crude cargoes for May loading to the Dangote refinery, up from five in previous months, two trade sources told Reuters.

Fuel prices in Nigeria have reached record highs, and Dangote has previously said it could source only about five cargoes a month locally—far below the 13 to 15 it requires—forcing it to import the rest at prices influenced by the war in the Middle East.

An increase in crude allocations to the 650,000-barrel-per-day refinery, Africa’s largest, could also reduce volumes available for export at a time when the Iran war has cut supply from the Middle East, pushing buyers to search widely for cargoes.

NNPC and the refinery did not immediately respond to requests for comment.

Dangote has increased gasoline supplies to the domestic market this month, meeting slightly more than two-thirds of daily demand of 60 million litres.

It has also raised petrol depot prices by about 13 percent.