Dangote warns of petrol export shift
The Dangote Petroleum Refinery has warned it may export surplus petrol as rising imports disrupt domestic demand planning and create costly inventory challenges.
In July, imported Premium Motor Spirit (PMS) accounted for about 43 percent of Nigeria’s fuel supply, despite the refinery’s capacity to meet and exceed national demand. Dangote Refinery said the continued issuance of import licences has injected uncertainty into the market, making it difficult to forecast consumption and manage stock efficiently.
*Dangote
Etim Ekpimah
The Dangote Petroleum Refinery has warned it may export surplus petrol as rising imports disrupt domestic demand planning and create costly inventory challenges.
In July, imported Premium Motor Spirit (PMS) accounted for about 43 percent of Nigeria’s fuel supply, despite the refinery’s capacity to meet and exceed national demand. Dangote Refinery said the continued issuance of import licences has injected uncertainty into the market, making it difficult to forecast consumption and manage stock efficiently.
Since operations began, the refinery has maintained adequate reserves to guarantee steady supply, investing heavily in storage, logistics, and working capital. However, the company noted that the lack of transparency regarding future import volumes has made it commercially unsustainable to hold excess inventory indefinitely.
“As a responsible energy provider, we have always ensured sufficient reserves to meet local demand. But when large volumes of imported PMS enter the market without clear visibility, maintaining excess stock becomes unsustainable,” the refinery stated.
It explained that products not absorbed domestically would be exported to regional and international markets. The company stressed that increased exports should not be interpreted as an inability to serve Nigeria, but rather as a necessary response to excess inventory caused by unpredictable imports.
Dangote Refinery emphasised that carrying large stockpiles without clarity on import levels imposes heavy storage and financing costs, undermining efficient market operations. Exporting surplus volumes, it said, is the only way to avoid unnecessary financial strain.
The company reaffirmed its readiness to meet Nigeria’s fuel needs and warned that any future supply shortfalls caused by market distortions should not be blamed on local refiners.
It called for greater transparency, improved coordination, and policies that prioritise local refining, strengthen energy security, conserve foreign exchange, and maximise the economic benefits of Nigeria’s investment in domestic refining capacity.
