The Dangote Petroleum Refinery has raised the alarm over growing petrol imports into Nigeria, warning that it may be forced to export excess Premium Motor Spirit (PMS) if the situation continues.
The refinery said the surge in imported petrol has created uncertainty in the domestic market, making it increasingly difficult to forecast demand, manage production and decide how much fuel should be kept in reserve for Nigerian consumers.
According to the company, imported petrol accounted for about 43 per cent of the PMS supplied into Nigeria in July, despite the refinery’s capacity to produce enough fuel to meet and even exceed the country’s requirements.
The refinery, Africa’s largest oil refinery, said it had invested heavily in storage facilities, logistics and working capital to ensure uninterrupted fuel supply since it began operations.
However, it warned that keeping large volumes of petrol in storage without knowing the quantity of imported products entering the market was becoming financially unsustainable.
In a statement issued on Wednesday, the refinery said the continued approval of petrol import licences by regulators had disrupted market planning.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely,” the company said.
The refinery explained that any petrol produced beyond what the domestic market can absorb would have to be shipped to regional and international markets to avoid unnecessary storage and financing costs.
It stressed that increased exports should not be interpreted as a sign that it is unable to supply Nigerians, but rather a response to excess stock created by uncertainty over imported fuel volumes.
“DPRP’s export volumes have increased in recent months, not because local demand cannot be met, but because excess inventory generated by market uncertainty must be evacuated to avoid unnecessary storage and financing costs,” the company added.
The Dangote facility maintained that it remained committed to supplying the Nigerian market and had the capacity to support the country’s energy needs. It also warned that future fuel shortages caused by poor market coordination or excessive imports should not be blamed on local refineries.
The refinery called for greater transparency in petrol supply planning, improved coordination among stakeholders and policies that would encourage domestic refining, reduce dependence on imported fuel and conserve foreign exchange.
The development comes amid ongoing debate over Nigeria’s petrol supply strategy following the commencement of operations at the Dangote Refinery, which was expected to reduce the country’s reliance on imported petroleum products.
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