Dangote Refinery has blamed the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, for the rise in Nigeria’s fuel imports despite the plant’s capacity to meet domestic demand.
Dangote Refinery made its position known in a statement on Wednesday.
NMDPRA, in its July Fact Sheet, said fuel imports into Nigeria had risen by 9 percent to 19.7 million litres per day, while Dangote Refinery’s domestic supply dropped by 21 percent to 25.8 million litres per day.
NMDPRA data showed that Dangote Refinery maintained the largest share of the domestic fuel supply market, at 56.7 percent, while imports accounted for 43.3 percent.
Reacting, Dangote Refinery stressed that the trend is inimical to the country’s plan to move away from fuel importation towards local production.
According to the refinery, the continued issuance of import licences despite its capacity to meet domestic demand would create fundamental distortions in the country’s petrol downstream sector.
The refinery warned that it could redirect its focus to exporting petrol products if the regulator continues to issue petrol import licences.
“As a responsible energy provider, we have always endeavoured to keep adequate reserves to satisfy local demand at all times. However, in an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely.
“DPRP therefore called for greater transparency, improved market coordination, and policies that support local refining, enhance energy security, conserve foreign exchange, and maximize the economic benefits of Nigeria’s investments in domestic refining capacity,” Dangote Refinery stated.
