Dangote Refinery threatens petrol exports as imports hit 43%

The Dangote Petroleum Refinery has warned that it may increase petrol exports as rising imports create uncertainty over domestic demand and make production and inventory planning increasingly difficult.

The refinery said imported Premium Motor Spirit (PMS) accounted for about 43 percent of petrol supplied to the Nigerian market in July, despite its capacity to meet and exceed domestic demand.

According to the refinery, the continued issuance of petrol import licences has reduced visibility over future supply volumes, making it commercially difficult to maintain large stocks for the domestic market.

It said it had consistently maintained adequate petrol reserves and dedicated volumes for Nigerian consumers since commencing operations, requiring significant investment in storage, logistics and working capital.

However, the refinery said holding excess inventory indefinitely was becoming unsustainable because it could not accurately determine how much imported petrol would enter the market.

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“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 said.

The company said any petrol that could not be absorbed by the domestic market would have to be evacuated to regional and international markets.

It stressed that the rise in its exports should…