The Dangote Petroleum Refinery has issued a warning that it will consider exporting its petroleum products if it does not receive adequate patronage from the Nigerian National Petroleum Company Limited (NNPCL) and other local oil marketers. This announcement was made by Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, during a live broadcast on the Brekete Family Show on Monday.
The statement comes in the wake of recent developments at the Dangote Refinery, where Aliko Dangote, the President of Dangote Refinery, revealed that the facility has commenced the production of Premium Motor Spirit (PMS), commonly known as petrol. The refinery, with a capacity of 650,000 barrels per day, began rolling out petrol from the plant on Tuesday.
Earlier reports indicated that petrol from the refinery would be available in the Nigerian market within 48 hours, contingent on the purchasing decisions of NNPCL. However, Edwin’s comments suggest there have been significant challenges in getting local traders and the NNPCL to buy the products.
According to Edwin, the refinery has been successfully producing and exporting other petroleum products, including aviation fuel, kerosene, and diesel. He highlighted that the recent start of PMS production represents the final stage of their current operational expansion, with petrochemicals being the next phase.
Edwin expressed frustration over what he described as a blockade preventing the local distribution of their products. He noted that despite the readiness of the refinery to supply the domestic market with petrol, obstacles from traders and the NNPCL have led them to focus more on exporting their products.
“We have been exporting aviation fuel, producing kerosene, and diesel, but now we have started the production of PMS. This is a significant step forward,” Edwin stated. “However, there have been attempts to block the distribution of our products within Nigeria. If the local market, including NNPCL, does not engage with us, we will have no choice but to continue exporting PMS as we do with our other products.”
The Dangote Refinery’s move to produce and supply petrol marks a critical development in Nigeria’s oil industry, potentially impacting the local market dynamics. The refinery’s readiness to supply petrol domestically contrasts with the challenges faced in securing local buyers. The situation underscores ongoing tensions within the Nigerian oil sector, particularly concerning the distribution and consumption of locally produced petroleum products.
The possibility of exporting petrol, if local demand is not met, highlights a broader issue of market access and the interplay between local producers and distributors. The Dangote Refinery’s stance may influence future negotiations with NNPCL and other stakeholders, shaping the landscape of Nigeria’s petroleum industry.
As the situation unfolds, the response from local traders, NNPCL, and the broader market will be crucial in determining whether the Dangote Refinery will shift its focus entirely to exports or achieve its goal of serving the domestic market. The outcome will likely have significant implications for Nigeria’s oil sector and its economic landscape.
