Dangote Industries Limited has announced that it will export its petroleum products to Europe and other international markets if Nigerian oil marketers continue to refuse to purchase them.
This decision comes after marketers complained to President Bola Tinubu about the negative impact of Dangote Refinery’s low prices on their businesses.
According to Devakumar Edwin, Vice President of Dangote Industries Limited, the refinery is struggling to sell its products locally, with only 29 tankers of diesel being sold per day. As a result, the refinery is forced to export most of its diesel and aviation fuel. …CONTINUE READING
The Dangote Refinery, which has the capacity of 650,000 barrels per day, started naphtha exports in March, low-sulphur straight run fuel oil (LSSR) exports in May, and began selling diesel and jet fuel domestically in April.
In June, it started exporting diesel meeting European specifications.
However, Edwin, who spoke on a Twitter Spaces session organized by Nairametrics, emphasised that if local demand does not increase, Dangote Refinery will have no choice but to export its products, including petrol, which was recently added to its production line.
This move may lead to a significant shift in Nigeria’s fuel supply and pricing dynamics.
“Petroleum product marketers in Nigeria have written to President Bola Tinubu to complain that the refinery’s local prices which have dropped from N1,200 to N1,000 and now N900 per litre are impacting their businesses negatively.
“As a result of this poor local patronage, the refinery exports most of its diesel and aviation fuel,” he said.
Edwin had earlier in a radio programme stated that if Nigeria National Petroleum Company Limited (NNPCL) refused to buy its products, the company will export it to the markets that needed it.
He had said, “We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. So, that was the last stage. The only thing now left out is petrochemicals.
“So, the good news for the country is we have started producing PMS from our refinery.”
According to Daily Trust, when he was asked if the petrol would be sold locally, he simply said, “Well, I explained how there has been a kind of a blockade from lifting our products within the country. The traders have been trying to block (it), and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.”
“But if the traders or NNPC are not buying the product, obviously, we will end up exporting the PMS as we are doing with the aviation jet and diesel,” he declared.
Edwin expressed surprise that the company started facing different challenges it never expected when the refinery was set to commence operations, noting that it’s philosophy of adding value to the economy is being frustrated.
“The philosophy is to take the crude, and instead of exporting the crude, refine it, add value; export the finished products, and supply the finished products locally. But unfortunately for us, we started facing challenges with the crude supply.
“What is happening today? We are struggling to get the crude. We are now importing the crude from the US, we are importing from Brazil, and from other parts of the world. So, the whole philosophy has gone upside down. After all these decades, we are exporting crude, importing products.
“The same thing is continuing. We are not getting enough crude allocation, and the crude is still being exported. We are forced to import crude from outside. Yes, we are getting some crude locally, but it’s not adequate.”
