The Dangote Petroleum Refinery has announced that it will consider exporting its Premium Motor Spirit (petrol) if Nigerian oil traders, including the Nigerian National Petroleum Company Limited (NNPC), fail to purchase its products. This decision comes as the refinery, which has commenced petrol production, faces significant hurdles in the local market.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, revealed on the Brekete Family program that the refinery has been producing high-quality petrol, meeting the Euro 5 standard, but local traders have shown resistance by importing diesel and aviation fuel instead. This situation has forced the refinery to export its products, including diesel and aviation fuel, to international markets.
The Dangote refinery, originally built to utilize Nigeria’s raw materials and reduce reliance on imports, has encountered difficulties in securing adequate crude oil supplies locally. As a result, the refinery has had to import crude oil from countries like the United States and Brazil, deviating from its initial plan.
Edwin highlighted that the Petroleum Industry Act (PIA) mandates that local refineries' crude oil needs must be met before any exports are allowed. However, the refinery's struggle to obtain sufficient crude oil has led to the construction of additional storage tanks, each with a 120-million-liter capacity, to accommodate imported crude.
Despite having the capability to load 2,900 tankers daily, the refinery is operating at just 5% of this capacity due to low domestic patronage. Edwin expressed concerns about efforts by some local traders to block the sale of Dangote’s products, forcing the refinery to look towards export options.
While the Dangote Group continues to invest in Nigeria, reinvesting profits to boost the economy, Edwin noted the ongoing criticism labeling Aliko Dangote as a monopolist. He emphasized that the refinery's operations are focused on environmental sustainability and energy efficiency, contributing positively to the country's Gross Domestic Product (GDP).
Negotiations between the government and Dangote Group are ongoing to facilitate the distribution of Dangote petrol within Nigeria, with the NNPC currently the sole authorized seller of the product. The government's intervention to ensure crude oil is supplied in local currency is reportedly beginning to show positive results.
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