Dangote to import over  140 million barrels from  US, other countries.
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The price of  premium motor fuel (PMS) may  be high in Nigeria as crude oil  imports and  increased shipping costs due to  new sanctions against Russia  have exacerbated the situation.
This comes as Dangote Refinery may import about 140 million barrels of crude oil from the  US and other  countries amid  tight oil production in Nigeria and the implementation of  the Domestic Crude Supply  Obligation (DCSO).
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Despite the local refining of petroleum products in Nigeria,  PMS pump prices hover around N970 and N1,200 per litre across the country with the recent increase  in the Dangote  refinery, which  has triggered a  boom in the sector across the country.
While Dangote had  said it had received about two million barrels of WTI Midland crude  oil from Chevron Corporation in December,  it is understood that the refinery  will receive  an additional 12 million barrels from the  United States next  month.
If the company maintains such import  volumes in 2025, it will  import up to 144 million barrels of crude oil  annually to  supply about 221 days at a full capacity of  650,000. Last year, Dangote did not import crude  oil for about three  months, relying on  an agreement with the Nigerian National Petroleum Company Limited (NNPCL) for a supply of 400,000 barrels  per day of Nigerian  oil to be paid for in  Naira.
The $20 billion refinery had earlier increased its storage capacity by one billion  liters while unveiling a plan to  increase production capacity to produce 57 million  liters of PMS, 27 million  liters of diesel and 20 million  liters of Jet A1.  The average daily consumption of PMS  in Nigeria is about 50 million  liters.
Dangote's refinery manager, Edwin Devakumar, had  said last month  that the refinery was operating at 550,000 bpd, which  represents 85% of its crude  distillation capacity.
While Dangote imports crude  oil and some  traders import products, renewed sanctions  against Russia  have increased the cost of  chartering a tanker or  ship by 15 and 10  percent for crude and products  respectively. Reuters reported that tanker freight costs for "clean products"  such as PMS, diesel and  kerosene have risen by about  10%, according to data from SSY Tankers and trade  sources.
Crude oil from the Gulf  of Mexico to China  cost about $8.715 million per  trip at the start of the month,  an increase of $1.895 million. The reality, which  Nigerian importers may  face, is that the cost  will be passed on to consumers to keep the pump price of petroleum products  high unless there is  a local sufficiency of crude  oil and petroleum  products.
While Dangote's refinery had  reduced its prices  ahead of the festive season, the company increased  its prices  in mid-January based on volume.  Traders, who  bought from the refinery  in quantities ranging from two to 4.99 million litres,  were charged N955 per litre  compared to N899.50. But for those  who bought five million litres and above, the price increased from N895 to N950 per litre. Most  traders, including NNPC,  subsequently adjusted their  prices.

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