Dangote Petroleum Refinery and Petrochemicals has attributed the recent increase in its petrol exports to continued imports of Premium Motor Spirit (PMS), saying the inflow of foreign products is disrupting domestic demand planning despite the refinery’s capacity to meet and exceed Nigeria’s fuel requirements.
The company said imported petrol accounted for about 43% of total PMS supplied into the Nigerian market in July, raising questions over the continued reliance on imports when substantial domestic refining capacity is available.
According to the refinery’s management, it remains committed to ensuring Nigeria’s energy security and has consistently maintained adequate inventories and reserved volumes to guarantee uninterrupted domestic supply.
However, the company said the lack of transparency over the volume and timing of imported petrol entering the country has made it increasingly difficult to plan production and manage inventory efficiently.
Dangote said the uncertainty has resulted in higher storage, logistics and financing costs, forcing it to evacuate surplus products into regional and international markets.
The refinery stressed that the increase in exports should not be interpreted as a withdrawal from the Nigerian market, but rather as a commercial response to excess inventory created by the continued inflow of imported petrol.
It said it remains ready and capable of supplying the domestic market, arguing that higher exports have become necessary where locally refined products cannot be efficiently absorbed because of competing imports.
Regulatory data for July showed that domestic petrol supply declined by 21% to 25.8 million litres per day, while imports increased by nine per cent to 19.7 million litres per day, placing imported PMS at roughly two-fifths of total market receipts.
During the month, Dangote Refinery produced about 25.9 million litres of petrol per day and exported approximately 3.4 million litres per day of PMS. The refinery also exported larger volumes of diesel and aviation fuel.
The company warned that if shortages occur as a result of market distortions created by excessive imports or the inability of local refiners to accurately forecast demand, such shortages should not be attributed to a lack of capacity or willingness by the refinery to supply the Nigerian market.
Dangote called for greater transparency in import planning, stronger coordination among market participants and policies that prioritise domestic refining.
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