The Dangote Petroleum Refinery has warned that it may increase the export of excess petrol if rising imports continue to create uncertainty around domestic demand and disrupt production planning.
The refinery said imported Premium Motor Spirit, PMS, accounted for about 43 per cent of petrol supplied to the Nigerian market in July, despite its ability to meet and exceed local demand.
According to the company, the continued issuance of petrol import licences has made it difficult to accurately forecast demand and manage its inventory, forcing the refinery to reconsider the volume of petrol it should hold for the domestic market.
Dangote Refinery said it has maintained sufficient fuel stocks and reserved product volumes to ensure uninterrupted supply since beginning operations. It noted that achieving this has required substantial investment in storage facilities, logistics and working capital.
However, the refinery said uncertainty over the quantity of imported petrol expected into the country was making production and inventory management increasingly difficult.
The company explained that when domestic demand fails to absorb available stocks, surplus petrol would have to be moved to regional and international markets through exports.
It stressed that the increase in its export volumes should not be interpreted as an inability to supply the Nigerian market, but rather as a response to excess inventory created by uncertainty surrounding petrol imports.
Dangote Refinery said holding large quantities of unsold petrol for extended periods creates significant storage and financing costs, making it commercially unsustainable without clear information about future import volumes.
The refinery said exports have therefore increased in recent months as a way of clearing excess stocks and reducing unnecessary storage and financing expenses.
It maintained that the move does not represent a withdrawal from the Nigerian market, stressing that it remains committed to ensuring adequate petrol supply across the country.
The company also reaffirmed that the refinery has the capacity to meet and exceed Nigeria’s petroleum product requirements and will continue investing in reliable domestic supply.
It warned that any future fuel shortages caused by market distortions arising from excessive imports and difficulties faced by local refiners in forecasting demand should not be attributed to the Dangote Refinery.
The refinery called for greater transparency in the petroleum market, better coordination among stakeholders and policies that encourage local refining.
It said such measures would strengthen Nigeria’s energy security, conserve foreign exchange and ensure the country gains maximum economic benefits from its investment in domestic refining capacity.
