Dangote threatens to export petrol as imports rise

The Dangote Petroleum Refinery has warned it may export excess petrol due to rising imports creating uncertainty around domestic demand. Imported Premium Motor Spirit (petrol) accounted for about 43% of fuel supplied into Nigeria's market in July, despite the refinery's capacity to meet domestic demand. The refinery stated that issuing petroleum product import licences has led to demand planning and inventory management uncertainty, prompting reconsideration of stock levels for the domestic market.

The company has consistently maintained sufficient inventory and reserve volumes since operations began, but says the lack of transparency over imported petrol volumes makes production and inventory planning difficult. As a responsible energy provider, the refinery said it aims to keep adequate reserves for local demand but in an environment with significant imported PMS entering the market and limited visibility on future imports, holding excess inventory becomes commercially unsustainable.

The refinery explained that surplus products not immediately absorbed by the domestic market will be exported to regional and international markets, not due to a lack of local demand but to evacuate excess inventory created by market uncertainty. The company insists its export volumes are not a withdrawal from the Nigerian market but a response to excess inventory to avoid unnecessary storage and financing costs.

The refinery reiterated its commitment to meeting and exceeding Nigeria's petroleum product requirements while investing in reliable supply and warned against blaming it for any future supply shortfalls caused by market distortions from excessive imports and local refiners' inability to accurately forecast demand.