• NNPC increases May crude supply to Dangote refinery to seven cargoes

• Refinery still below capacity, relying partly on crude imports

• Move aims to cut fuel imports, ease subsidies, stabilize supply

Nigeria’s state oil company NNPC has increased crude supply to Dangote Group’s refinery for May, raising deliveries from five to seven cargoes, sources told Reuters on Tuesday.

The refinery has yet to receive sufficient volumes to operate at full capacity and continues to rely partly on crude imports.

It is also operating in a highly volatile market. In response to rising international oil prices, it has made several price adjustments while continuing to supply the domestic market.

The refinery has absorbed some of the higher costs to limit the impact on consumers and ensure continued supply.

The increase is part of broader efforts to support the domestic market. By supplying more crude to the local refinery, NNPC is helping reduce reliance on refined fuel imports.

The move also helps limit pressure on public finances from fuel subsidies and imports. By refining more crude locally, Nigeria is strengthening its ability to stabilize the energy market and ensure supply. The arrangement also gives NNPC greater flexibility to manage the balance between export volumes and domestic supply.

Despite the increase, constraints remain, including production levels and logistics capacity. The refinery’s ability to operate at full capacity will depend on securing enough crude in a competitive global market. The trend in these allocations will be a key indicator of the balance between energy policy, production constraints and fiscal pressures in Nigeria.

Olivier de Souza