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Pricing Issues See Domestic Refiners Reject $3.13bn Crude Oil

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Nigeria Earns N12.4tn from Crude Oil in 11 Months – Report

Nigeria’s local refiners could not take up an estimated $3.13bn worth of crude oil offered to them in Q1 2026.

This was gleaned from data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which indicates that while crude producers made significant volumes available under the Domestic Crude Supply Obligation (DCSO), refiners were unable to take delivery of a large portion due to persistent commercial and structural challenges.

The latest data showed a significant mismatch between crude availability and actual refinery offtake, despite regulatory efforts to deepen domestic refining. The figures indicate that producers collectively made available 68.7 million barrels of crude between January and March, far above allocated requirements, yet refiners struggled to convert the offers into actual deliveries.

This translates to a weak conversion rate of about 36–46 per cent, underscoring persistent structural and commercial bottlenecks in the domestic crude supply chain.

Findings showed that the total gap between crude offered and actual refinery offtake stood at 40.3 million barrels in the three-month period, with the shortfall valued at about $3.13bn using conservative average prices.

Figures released by the NUPRC indicated that while 61.9 million barrels were allocated to domestic refiners during the period, oil producers collectively offered 68.7 million barrels.

ALSO READ: NUPRC, NLNG Deepen Collaboration to Raise Gas Production

However, actual deliveries lagged significantly, with refiners lifting just 28.5 million barrels, indicating that crude producers supplied local refineries with less than half of the volumes allocated under the country’s domestic ‌crude supply rules.

The development underscores a persistent gap between crude availability and actual refinery intake, raising fresh concerns over feedstock adequacy for Nigeria’s refining ambitions.

In the press statement earlier issued by the commission, the NUPRC Head of Media and Corporate Communications, Eniola Akinkuotu, said the data reflected ongoing efforts to enforce the DCSO in line with the Petroleum Industry Act (PIA).

The statement read, “The Nigerian Upstream Petroleum Regulatory Commission has released the statistics on the enforcement of the Domestic Crude Supply Obligation in accordance with the provisions of the Petroleum Industry Act.

“A summary of the monthly allocation shows that 61.9 million barrels of crude oil were allocated to domestic refineries during the quarter, while producers collectively offered a higher volume of 68.7 million barrels. However, actual supply to local refineries was 28.5 million barrels, translating to a supply conversion rate of 36-46 per cent as of the end of the first quarter 2026.”

A breakdown of the value of rejected crude revealed that in January, producers offered 25.3 million barrels, but refiners lifted only 9.2 million barrels, leaving a shortfall of 16.1 million barrels valued at approximately $1.09bn.

In February, out of the 19.8 million barrels offered, refiners took 9.1 million barrels, resulting in a gap of 10.7 million barrels worth about $749m. Similarly, in March, refiners lifted 10.1 million barrels from the 23.6 million barrels offered, leaving 13.5 million barrels unutilised, with an estimated value of $1.28bn.

The data underscores a persistent disconnect between crude supply and refinery demand, despite regulatory efforts to prioritise local refining under the Petroleum Industry Act, 2021.

Energy

Ex‑depot Price Unchanged – Dangote Refinery

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Dangote Petroleum Refinery and Petrochemicals Limited has assured that the price of Premium Motor Spirit (PMS) remains the same in Nigeria, stating that its ex‑depot price remains unchanged.

The Refinery by sustaining its current prices is reaffirming its commitment to supporting stability in the domestic energy market and cushioning the wider economy against external shocks. By absorbing prevailing cost pressures, the refinery continues to help moderate inflationary risks, promote energy affordability, and ensure uninterrupted supply amid ongoing global uncertainties.

The Dangote Refinery reaffirmed its dedication to the steady supply of high‑quality petroleum products to the Nigerian market, while supporting national objectives of price stability and energy security.

ALSO READ: Q1 2026: Dangote Cement Grows Exports by 71.6%, Capacity Hits 55MTA

The public is urged to rely solely on official statements from Dangote Petroleum Refinery and Petrochemicals Limited for accurate and up‑to‑date information on its operations and pricing.

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NUPRC, NLNG Deepen Collaboration to Raise Gas Production

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has reiterated commitment to enabling a business-friendly environment and advancing the federal government’s gas agenda.

The Commission’s Chief Executive (CCE), Oritsemeyewa Eyesan, voiced the commitment during a visit by the Managing Director of Nigeria LNG Limited (NLNG), Adeleye Falade, according to a statement in Abuja by its Head, Media and Corporate Communications of the commission, Eniola Akinkuotu.

Receiving the NLNG delegation, Eyesan said: “We are deliberately repositioning the commission as a business enabler,” she said, adding “Through our monthly stakeholder engagements, we X-ray industry performance and resolve issues proactively to ensure they do not escalate.”

The NUPRC chief restated the administration’s responsiveness to the oil and gas sector, linking it to improved investor confidence and increased final investment decisions.

Eyesan added that: “The Decade of Gas is not aspirational; it is a practical framework for expanding domestic utilisation while strengthening export capacity.”

In his remarks, the NLNG Managing Director, Falade, stressed the centrality of upstream collaboration to sustaining gas supply.

Falade highlighted NLNG’s domestic Liquefied Petroleum Gas (LPG) strategy as a deliberate market-shaping intervention.

“Today, 100 per cent of our LPG production is dedicated to the domestic market — not due to reduced output, but because demand has expanded significantly,” he said.

ALSO READ: NMDPRA Credits Dangote’s Disclosure of Aviation Fuel Price with Potential Market Stability

Looking ahead, he noted that: “Train 7, expected to come on stream next year, will increase our production capacity by about 35 per cent, positioning us to scale both domestic supply and export volumes.”

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NMDPRA Credits Dangote’s Disclosure of Aviation Fuel Price with Potential Market Stability

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said the indicative gantry price for aviation fuel released by Dangote Refinery will ensure market stability and compliance by marketers.

The agency’s Director of Public Affairs, Mr. George Ene-Ita, disclosed this in Abuja on Saturday, in an interview with the News Agency of Nigeria (NAN).

Ene-Ita was reacting to the pricing and high cost of Aviation Turbine Kerosene (ATK), also known as aviation fuel or Jet A1.

The Dangote Petroleum Refinery has fixed its gantry price of ATK at N1,820 per litre, a move aimed at enhancing transparency in the sector.

This development comes at a time when Nigerians and airline operators have raised concerns over the high cost of the product and its heavy impact on the aviation industry.

ALSO READ: Dangote Group Slams False Claims on Refinery Financing, ‘Rift’ with Elumelu

In a move to ensure market stability, fair pricing, and ease mounting pressure on airline operators and passengers, NMDPRA had earlier set a jet fuel price cap for marketers, ordering direct sales to airlines.

The NMDPRA had issued a directive that the cost of Jet A1 fuel for end-users should range between N1,760 and N1,988 per litre in Lagos, and N1,809 to N2,037 per litre in Abuja.

In spite of the advisory guidance from the NMDPRA, oil marketers have continued to sell aviation fuel to airlines at N2,230 per litre and above, deepening concerns across Nigeria’s aviation sector.

Ene-Ita said that although petroleum product prices had been deregulated, the latest indicative gantry price for ATK disclosed by the refinery would further support its monitoring efforts.

“All petroleum product prices have been deregulated.

“However, with particular emphasis on ATK, the Dangote Refinery, having released its latest indicative gantry prices, which they promised to publish daily going forward, will enable us to ensure tacit compliance by marketers and operators during our routine surveillance operations nationwide.

“We are not unmindful of the fact that what the Dangote Refinery is doing is a concession to help ease overhead cost pressures in the aviation sector in order not to truncate its operations.

“So, we will play our part to see that Nigerians benefit from the gesture,” he said.

The NMDPRA pricing framework was derived from Platts average figures recorded between April 17 and 23, reflecting prevailing global oil market conditions.

According to the regulator, while the benchmarks provide guidance on fair pricing, actual market prices may fluctuate outside the stated range depending on the timing of purchase and external factors.

It specifically cited heightened global volatility driven by geopolitical tensions, including the ongoing U.S.–Iran crisis, as a key contributor to the recent hike in aviation fuel prices.

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