Dangote Refinery has revealed that it is compelled to export between 95% and 97% of its Premium Motor Spirit (petrol) due to insufficient demand from local marketers.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, shared this information during an X Space session organized by Nairametrics on Wednesday. He highlighted that the refinery only sells about 2% to 3% of its petrol to local traders who are willing to buy.
The refinery’s heavy reliance on exports comes as it faces a looming deadline for the Nigerian National Petroleum Company Limited (NNPC) to begin lifting fuel from the facility without a clear plan in place.
In related news, NNPC has requested dedicated office space for 6 to 10 of its staff at the Dangote Refinery. This request is part of an agreement where NNPC will supply crude oil, oversee production, and repurchase refined products in Naira. The arrangement involves purchasing crude from the government in Naira and selling the refined petrol in the same currency, rather than in dollars.
Edwin noted ongoing negotiations with the government regarding the pricing structure and exchange rates. Despite potential financial losses due to exchange rate fluctuations, Aliko Dangote has agreed to the proposal from the Federal Government, recognizing the urgent need for foreign exchange and expressing his willingness to absorb the cost for the country’s benefit.
