FG reveals reason for planning to build petroleum product stockpile

• The national authorities is readying to physique the National Strategic Stockpile to stockpile crude lipid to hedge against falling prices
• The main enforcement of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, disclosed this recently
• He said the determination volition insulate Nigeria from planetary proviso shocks and guarantee capable vigor security

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The Nigerian authorities is readying to physique a nationalist strategical petroleum products stockpile, modelled aft the US crude reserve, to hedge the system against planetary marketplace disruptions.

Farouk Ahmed, the main enforcement of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), disclosed this connected Tuesday, April 15, 2025, saying the determination would mitigate proviso shocks and boost Nigeria’s energy security.

FG begins plans to physique nationalist crude lipid reserves against terms shocks. Credit: CreativeNature_nl
Source: Getty Images

Nigeria aims to summation refining capacity

Nigeria often battles substance scarcity and agelong queues contempt being a apical planetary crude lipid producer.

The state wants to summation its home refinery capacity, particularly the mega Dangote Refinery, to physique buffers against planetary proviso disruptions.

Reuters reports that portion the state keeps petroleum merchandise reserves for 30 days, the National Strategic Stockpile volition guarantee it is ne'er affected by planetary proviso disruptions.

Ahmed, however, did not supply further details connected the reserves' holding capableness and volume.

Dangote and different refineries clang petrol imports

According to reports, the Dangote Refinery and different smaller facilities person importantly chopped Nigeria’s petrol imports from 50.8 cardinal litres regular successful September to N28.7 cardinal litres successful March 2025.

Data from NMDPRA shows that functional refineries are projected to refine astir 770.500 barrels per time until June.

The authorization expressed hopes that refining maturation could destruct petroleum merchandise imports.

Petrol import drops

Legit.ng earlier reported that petroleum products, particularly PMS, dropped arsenic importers imported 156,897,000 litres of Premium Motor Spirit (PMS) wrong 8 days. Separate documents from the Major Energies Marketers Association of Nigeria and the Nigerian Port Authority (NPA) corroborate the numbers. 

Separate documents from the Major Energies Marketers Association of Nigeria and the Nigerian Port Authority (NPA) corroborate the numbers. 

After astir 2 weeks of selling petroleum products successful dollars, the Dangote Refinery started selling successful naira again. 

Landing costs crash

This alteration instantly brought down the loading cost to N865 from astir N1,000 per litre, bringing alleviation to Nigerians. 

As of past week, the terms from the Dangote refinery was little than that of imported fuel, but that has changed. 

At N853 per litre, the landing outgo of imported substance is present N12 cheaper than the loading outgo offered by Dangote Refinery. 

NNPC and Dangote Refinery slash petrol prices amid plans to physique a stockpile reserve. Credit: Bloomberg/Contributor
Source: Getty Images

This is the 2nd terms driblet this week, down from N856.75 connected Monday to N853 on-the-spot income terms connected Tuesday.

Refinery owners foretell caller petrol prices

Legit.ng earlier reported that the Dangote Refinery has continued to clang petrol prices arsenic parties returned to the dialog array to renew the naira-for-crude deal.

Recall that the Nigerian authorities had ordered the deal’s continuation, stating it was not time-bound.

The improvement led to the mega refinery reverting to selling PMS successful naira and crashing its petrol prices to N865 per litre from N930, with refinery owners predicting little prices.

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Source: Legit.ng