Dangote Threatens Petrol Export Amid Rising Imports

The Dangote Petroleum Refinery has threatened to export excess petrol stocks as rising imports create uncertainty around domestic demand and make inventory planning increasingly difficult. The refinery said imported Premium Motor Spirit (petrol) accounted for approximately 43 per cent of fuel supplied into the Nigerian market in July, despite its capacity to meet and exceed domestic demand. It said the continued issuance of petroleum product import licences had created uncertainty in demand planning and inventory management, forcing it to reconsider how much petrol it should keep in stock for the domestic market. According to the refinery, it has consistently maintained sufficient inventory and reserved product volumes to guarantee steady supply to the Nigerian market since commencing operations. It said this had required significant investments in storage, logistics and working capital. However, the company said the lack of transparency over the volume of imported petrol expected into the country was making it difficult to plan production and inventory efficiently. “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 in a statement on Wednesday. The refinery explained that surplus products that were not immediately absorbed by the domestic market would have to be exported to regional and international markets. Related News Morning recap: Atiku-Tinubu clash widens, Dangote threatens petrol export, other top stories Rising returns push young Nigerians toward investing early CBN’s priority is macro stability, not portfolio investment — Analysts It said its increasing export volumes were therefore not a reflection of an inability to meet local demand, but a response to excess inventory arising from uncertainty over the quantity of imported products entering the market. “However, the absence of transparency regarding the actual volume of imported products expected into the country makes effective production and inventory planning increasingly challenging. Maintaining large stock positions without clear visibility into import volumes imposes substantial carrying costs on the refinery and ultimately undermines efficient market operations,” it stated. The company said exports had become necessary to avoid unnecessary storage and financing costs associated with holding excess petrol stocks. It stressed that the development should not be interpreted as a withdrawal from the Nigerian market, insisting that it remained committed to ensuring adequate fuel supply across the country. “Consequently, 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 emphasised. The refinery mentioned that it remained ready and able to meet and surpass Nigeria’s petroleum product requirements, while continuing to invest in reliable supply. It also warned that any future supply shortfalls resulting from market distortions caused by excessive imports and the inability of local refiners to accurately forecast demand should not be blamed on Dangote Refinery. “DPRP therefore called for greater transparency, improved market coordination, and policies that support local refining, enhance energy security, conserve foreign exchange, and maximize the economic benefits of Nigeria’s investments in domestic refining capacity,” the statement concluded. Dare Olawin Dare Olawin is a journalist at Punch Newspapers with over a decade of reporting experience. He began his career as a community reporter and now covers the energy sector, including oil, gas, electricity, and renewables. Dare’s work reflects hands-on newsroom experience, professional development through workshops and conferences, and a strong commitment to accurate and insightful journalism.