The Dangote Petroleum Refinery has raised concerns over what it described as the rising volume of imported petrol entering Nigeria, saying the development is creating uncertainty for local production and inventory planning.
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. It is now calling for greater transparency from the regulator over the volume of import licences being issued and the quantity of petrol expected to enter the country.
According to the refinery, it has consistently maintained enough petrol stocks and reserved products to meet local demand since beginning operations. However, the continued arrival of large volumes of imported fuel is making it increasingly difficult to predict domestic demand. The company said keeping large inventories without clear information on future imports also comes with significant storage and financing costs.
Dangote Refinery explained that when locally refined petrol is not immediately absorbed by the Nigerian market, it has to be moved to regional and international markets to prevent excess stock from becoming a financial burden. The refinery stressed that its increased exports should not be seen as a withdrawal from the Nigerian market, but rather as an operational response to uncertainty created by competing imports.
The company maintained that it remains capable and prepared to meet and exceed Nigeria’s petroleum product needs. It called for greater transparency, better market coordination and policies that support local refining, arguing that such measures could strengthen Nigeria’s energy security, reduce pressure on foreign exchange and ensure the country gets the full economic benefit of its growing domestic refining capacity.
source: Leadership
