NNPC crude supply efforts aim to ease fuel shortages and stabilise prices as Dangote Refinery ramps up and Middle East tensions surge oil costs

The Nigerian National Petroleum Company Limited (NNPC Ltd) has initiated high-level discussions with international oil companies and indigenous producers to increase crude output, Daily Sun has learnt.

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The move aims to support local refining and mitigate rising fuel prices as the Dangote Petroleum Refinery expands operations.

The discussions come amid escalating global tensions, with Iran’s military warning that crude prices could spike to $200 per barrel following attacks on three vessels in the Strait of Hormuz, a key oil transit route.

According to sources within NNPC Limited, the talks focus on boosting crude availability for domestic refining and easing pressure on petrol supplies.

“NNPC Limited recognises that the Dangote Refinery is a strategic national asset. We are working with joint venture partners and production operators to improve domestic crude production,” the sources said.

They emphasised that the state oil company is actively monitoring global developments and coordinating with industry regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to ensure consistent product availability across Nigeria.

In parallel, NNPC continues to advance gas development initiatives to diversify the country’s energy mix and reduce exposure to global oil price shocks.

“Our focus remains clear: to safeguard national energy security and ensure Nigerians continue to have access to petroleum products despite global market disruptions,” the sources added.

On the international front, the International Energy Agency (IEA) announced a historic release of 400 million barrels of oil to ease supply shortages caused by the Middle East conflict.

IEA Executive Director Fatih Birol described the move as the largest emergency oil release in the agency’s 50-year history, while stressing that stabilising oil flows ultimately depends on reopening the Strait of Hormuz.

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Market analysts note that NNPC’s proactive measures, combined with global interventions, could help cushion the domestic market against extreme price volatility, even as geopolitical risks continue to challenge global energy security.