Dangote refinery: Rising petrol imports forcing us to export excess products

Dangote Refinery has cautioned the Nigerian Market Development and Promotion Regulatory Authority (NMDPRA) regarding the escalating issue of fuel imports, which is compelling the company to focus more on exports. Despite DPRP's capacity to meet and exceed Nigeria's domestic Premium Motor Spirit (PMS) needs, the influx of imported PMS has introduced uncertainty in demand forecasting and inventory management.

Imported PMS constituted around 43% of the fuel supplied to the Nigerian market in July, sparking questions about the necessity of large-scale imports when there is ample local refining capacity. DPRP has consistently maintained adequate inventory levels and reserves to ensure steady supply to the Nigerian market, investing significantly in storage, logistics, and working capital to shield Nigerians from supply disruptions and market volatility.

However, the lack of transparency about the volume of imported products raises difficulties in planning production and inventory. Holding substantial stock without clear visibility into import volumes incurs significant costs for the refinery, hindering efficient market operations. Consequently, surplus products are being exported to regional and international markets to avoid unnecessary storage and financing expenses.

DPRP maintains that its increasing exports are not a sign of disinterest in the Nigerian market but a prudent operational response to market uncertainties caused by excessive imports. The refinery reiterates its commitment to meeting and exceeding Nigeria's petroleum product requirements and remains ready to invest in ensuring a reliable supply across the country.

DPRP calls for increased transparency, better market coordination, and policies that bolster local refining, strengthen energy security, preserve foreign exchange, and maximize the economic benefits of Nigeria's investments in domestic refining capacity.