Nigeria's state oil firm is increasing crude supply to the Dangote refinery for May, as global oil disruptions linked to tensions in the Middle East push fuel prices higher and tighten supply.

The Nigerian National Petroleum Company (NNPC) has allocated seven cargoes of crude to the refinery for May, up from about five in previous months, according to trade sources and a refinery official familiar with the matter told Reuters.

The move comes at a time when the 650,000 barrels-per-day Dangote refinery, Africa's largest, has struggled to secure enough domestic crude to operate at optimal levels. The plant requires between 13 and 15 cargoes monthly but has been forced to import a significant portion of its feedstock.

That gap has exposed the refinery to rising global prices, especially after supply disruptions tied to the Iran conflict reduced Middle Eastern exports and intensified competition for available crude.

A senior refinery official said the additional volumes from NNPC would provide some relief, though they still fall short of total demand.

Discussions are ongoing to secure more supply, the official added.

Sourcing crude locally is significantly cheaper for the refinery due to lower logistics costs. Imports have become increasingly expensive, with the refinery recently paying premiums of up to $18 per barrel above Brent crude to secure cargoes from the international market.

The higher crude costs are feeding into domestic fuel prices. Petrol prices in Nigeria have climbed to record highs in recent weeks, reflecting both global oil market pressures and supply constraints.

The Dangote refinery has ramped up petrol supply to the local market, now meeting slightly more than two-thirds of Nigeria's estimated daily demand of 60 million litres.

However, it has also increased depot prices by about 13 per cent this month.

An increase in crude allocations to the refinery could reduce the volume of Nigerian oil available for export, potentially tightening global supply further at a time when buyers are already scrambling for alternatives to Middle Eastern crude.