DANGOTE REFINERY MAY EXPORT PETROL AS IMPORTS TAKE LARGER SHARE OF MARKET

The Dangote Petroleum Refinery has warned that it may increase the export of petrol as rising imports create uncertainty over domestic demand and make it increasingly difficult to plan production and manage inventories.

The refinery disclosed that imported Premium Motor Spirit, commonly known as petrol, accounted for about 43 per cent of the fuel supplied to the Nigerian market in July 2026. It said the development was concerning because the Dangote refinery has the capacity to meet and exceed the country’s domestic petroleum requirements.

According to the refinery, the continued issuance of import licences for petroleum products has made it difficult to accurately determine how much petrol will be required locally. This uncertainty, it said, has affected decisions on how much product should be retained for the Nigerian market and how much should be moved elsewhere.

Dangote Refinery explained that its increasing exports in recent months should not be interpreted as an inability to satisfy domestic demand. Rather, the refinery said it has been forced to evacuate excess stocks created by uncertainty in the local market in order to prevent additional storage and financing costs.

The company maintained that it remains capable of supplying sufficient petrol to meet Nigeria’s needs and is prepared to increase its contribution to the domestic market when conditions allow. It also warned that any future shortage caused by excessive imports or distortions in the market should not be attributed to the refinery.

The development comes amid a renewed increase in petrol imports. Data reported earlier this week showed that Dangote Refinery’s petrol supply fell by 21 per cent in July, from 32.5 million litres per day in June to 25.8 million litres per day, while imports rose by nine per cent from 18.1 million litres to 19.7 million litres daily.

Despite the month-on-month increase in imports, domestic refineries continued to account for a substantial share of Nigeria’s petrol supply. Separate data reported by PUNCH showed that domestic refineries supplied nearly three-quarters of the country’s petrol during the first seven months of 2026.

Dangote Refinery called for greater transparency in the volume of imported petroleum products and improved coordination among stakeholders in the downstream oil sector. It argued that policies should encourage local refining, strengthen Nigeria’s energy security and reduce the country’s dependence on foreign exchange for imported fuel.

The refinery also said better coordination would help Nigeria maximise the economic benefits of its growing domestic refining capacity while ensuring that investments in the sector translate into reliable petroleum supplies.

The situation highlights the changing dynamics of Nigeria’s downstream petroleum market, with domestic refining capacity expanding while imported products continue to compete for market share. The Dangote facility, which has significantly increased Nigeria’s refined-product output and exports, is now seeking a market environment that allows local refiners to better predict demand and manage production.