The Dangote Petroleum Refinery and Petrochemicals, DPRP, has explained why it increased petrol export volume, which does not stop its capacity to meet local demands.
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Dangote Refinery, in a statement yesterday, expressed concern over the continued issuance of petroleum product import licences, despite the refinery’s proven capacity to meet and exceed Nigeria’s domestic Premium Motor Spirit (PMS) requirements.
According to Dangote, “Maintaining large stock positions without clear visibility into import volumes imposes substantial carrying costs on the refinery and ultimately undermines efficient market operations.
“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 refinery noted that while it remained fully committed to supporting Nigeria’s energy security and ensuring uninterrupted fuel availability across the country, the volume of imported PMS entering the market has created uncertainty in domestic demand planning and inventory management.
According to market data available to the refinery, imported PMS accounted for approximately 43 per cent of the fuel supplied into the Nigerian market in July, a development that raises questions about the necessity of continued large-scale imports when substantial local refining capacity exists.
Since commencing operations, Dangote Refinery has consistently maintained sufficient inventory levels and reserved product volumes to guarantee steady supply to the Nigerian market.
‘’This commitment has required significant investment in storage, logistics, and working capital, all aimed at protecting Nigerians from supply disruptions and market volatility.”
However, the refinery noted, that the absence of transparency regarding the actual volume of imported products expected into the country makes effective production and inventory planning increasingly challenging.
It explained that, under these circumstances, any surplus products not immediately absorbed by the domestic market must be exported to regional and international markets.
“Consequently,” Dangote refinery said, its “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.”
Dangote Refinery emphasised that its growing exports should not be interpreted as a lack of commitment to the Nigerian market, noting that exports were a prudent operational response to the realities of a market where imported products continue to compete with locally refined fuel despite the availability of sufficient domestic refining capacity.
The company reiterated that it remained ready, willing and able to meet and surpass Nigeria’s petroleum product requirements and invest heavily in ensuring reliable supply across the country.
Vanguard News
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