The Dangote petrol exports have increased in recent months because imported fuel continues to enter Nigeria despite the refinery’s capacity to meet domestic demand.

The Dangote Petroleum Refinery and Petrochemicals said the increase in exports should not be interpreted as an inability to supply the Nigerian market.

In a statement, the refinery expressed concern over the continued issuance of petroleum product import licences despite its demonstrated capacity to meet and exceed Nigeria’s Premium Motor Spirit requirements.

The company said maintaining large fuel inventories without clear information about future import volumes had become increasingly expensive.

According to the refinery, keeping excessive stocks requires substantial spending on storage, logistics and working capital.

It said it had consistently maintained adequate reserves to protect Nigerians against supply disruptions and market volatility.

However, uncertainty surrounding imported fuel volumes has made production and inventory planning more difficult.

The refinery said available market data showed that imported PMS accounted for approximately 43 per cent of petrol supplied into Nigeria in July.

It questioned the need for continued large-scale imports when significant domestic refining capacity is available.

Dangote said imported products competing with locally refined fuel had created uncertainty around domestic demand.

The company explained that holding surplus inventory indefinitely was commercially unsustainable when future import volumes could not be accurately determined.

The refinery said excess products that are not immediately absorbed by the Nigerian market must eventually be moved elsewhere.

“Consequently,” the company said, Dangote petrol exports increased because surplus inventory had to be evacuated to regional and international markets.

It stressed that the exports were not caused by an inability to satisfy local demand.

Rather, the company described the move as an operational response to market conditions and the financial burden of holding excess stocks.

The refinery said keeping unnecessary inventory would increase storage and financing costs without corresponding benefits.

Dangote Refinery maintained that it remained committed to Nigeria’s energy security and uninterrupted fuel availability.

The company said its operations since commencement had included maintaining sufficient inventory and reserving products specifically to ensure steady domestic supply.

It added that this approach had required substantial investment in infrastructure and working capital.

The refinery further stated that it had both the willingness and capacity to meet, and potentially exceed, Nigeria’s petroleum product requirements.

It also reaffirmed its intention to continue investing in reliable fuel supply across the country.

The company therefore urged stakeholders not to interpret rising Dangote petrol exports as a withdrawal from the Nigerian market, saying the exports were instead driven by surplus inventory created by uncertainty in domestic demand planning.