The Dangote Petroleum Refinery has threatened to divert excess petrol stocks to regional and international markets as rising imports make it increasingly difficult to plan production and inventory for the Nigerian market.
The refinery said imported Premium Motor Spirit (PMS), commonly known as petrol, accounted for about 43 per cent of fuel supplied to the Nigerian market in July, despite its capacity to meet and exceed domestic demand.
In a statement on Wednesday, the refinery blamed the continued issuance of petrol import licences and limited visibility on future import volumes for creating uncertainty around domestic demand and inventory management.
It said the situation had made it commercially unsustainable to continue holding large quantities of petrol in storage indefinitely.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times,” the refinery said.
It explained that maintaining sufficient reserves required substantial investments in storage, logistics and working capital, adding that excess inventory incurred significant storage and financing costs.
The refinery said it had consequently increased exports in recent months, stressing that the development was not due to an inability to supply the Nigerian market.
“DPRP’s 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,” it stated.
According to the company, petrol that is not immediately absorbed by the domestic market would have to be exported to regional and international markets.
The refinery maintained that it remained capable of meeting and exceeding Nigeria’s petroleum product requirements and would continue investing in reliable domestic supply.
It, however, warned that any future fuel shortages resulting from market distortions caused by excessive imports and poor demand forecasting should not be blamed on the Dangote Refinery.
The company called for greater transparency in petroleum imports, improved market coordination and policies that support local refining, conserve foreign exchange and strengthen Nigeria’s energy security.
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