The Dangote Petroleum Refinery has revealed that it is being forced to export 97 percent of its refined petroleum products due to low patronage from local oil marketers.
According to Devakumar Edwin, Vice President of Dangote Industries Limited (DIL), only 3 percent of local oil marketers are currently purchasing refined products from the refinery.
Speaking during a discussion on X (formerly Twitter), Edwin expressed frustration over the lack of support from domestic buyers, despite the refinery’s efforts to supply the local market.
“The conglomerate of all the importers is refusing to buy from us. It is very strange that after putting up the refinery to supply the products locally, I have to export every diesel and jet fuel because they do not want to buy from us,” Edwin said.
He explained that the refinery had set competitive prices for diesel, initially below market rates, and further reduced them.
However, this price cut prompted the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to write to President Bola Tinubu, claiming the reduced prices affected their business due to their large inventory of imported Automotive Gas Oil (AGO).
“I’m selling 2 percent to 3 percent to small traders who are willing to buy, while the rest 95 to 97 percent I’m forced to export,” Edwin noted, adding that the refinery may also be forced to export its petrol if local buyers remain unwilling to purchase.
However, Edwin acknowledged that the Nigerian National Petroleum Company (NNPC) has initiated discussions with the refinery to potentially resolve the issue.
“NNPC has come forward. They have been discussing with us for almost three weeks now, though it is not yet concluded,” he said.
NNPC is reportedly working to agree on the quantity of crude it can supply to the refinery and plans to closely monitor the refining process.
“They are going to have a team of 10 people sitting in the refinery. They will see the crude which we are going to receive, ensuring that everything is coming into the refinery, and they would watch whether we are producing and processing everything and then, they would watch whether we are giving back all the products,” Edwin added.
