Dangote Refinery Raises Concerns Over Fuel Imports

On Wednesday, the management of Dangote Petroleum Refinery and Petrochemicals (DPRP) raised concerns regarding the issuance of petroleum product import licenses, despite the refinery's proven capacity to meet and exceed Nigeria's domestic Premium Motor Spirit (PMS) requirements. The refinery highlighted that imported PMS constituted approximately 43 percent of the fuel supplied in Nigeria in July, questioning the need for continued large-scale imports given the existing local refining capacity.

DPRP has maintained sufficient inventory levels to ensure a steady supply, which necessitated significant investments in storage and logistics. However, the lack of transparency regarding the volume of imports complicates effective production and inventory planning, leading to increased carrying costs.

DPRP stated that the ongoing influx of imported PMS makes it unsustainable to hold excess inventory, prompting the need to export surplus products to avoid storage costs. Consequently, DPRP's export volumes have risen, not due to an inability to meet local demand, but as a response to market uncertainties.