Refinery Exports Fuel Amid Low Local Patronage
The Dangote Refinery has begun exporting diesel and jet fuel as local petroleum marketers in Nigeria have refused to patronise its products, despite significant price reductions. According to Devakumar Edwin, Vice President of Dangote Industries, this decision follows consistent poor sales domestically, with local buyers citing falling prices as harmful to their businesses.
Marketers Protest Price Drop to President Tinubu
Edwin revealed that marketers have taken their grievances to President Bola Tinubu, complaining that Dangote’s price cuts – from ₦1,200 to ₦900 per litre – have negatively impacted their profits. Despite the refinery offering competitive prices, local marketers remain hesitant, forcing the company to export its products to international markets.
Refined Products Struggling to Move in Local Market
The refinery has reportedly struggled to sell up to 29 tankers of diesel per day due to low patronage. Edwin pointed out that local marketers and importers of petroleum products are reluctant to lift the refinery’s products. This blockade has left Dangote Refinery with little option but to export its diesel and jet fuel internationally.
Blockade Hinders Dangote’s Ambitions
Dangote Industries is facing hurdles as it tries to sell refined petroleum products locally. The refinery had aimed to reduce Nigeria’s dependence on imported petroleum, but a lack of cooperation from local traders and the Nigerian National Petroleum Company (NNPC) has created obstacles. “We are now exporting crude from the US and Brazil to keep the refinery running,” Edwin noted.
Dangote Starts Producing Petrol Amid Local Resistance
Despite the challenges, Edwin announced that Dangote Refinery has begun producing Premium Motor Spirit (PMS), commonly known as petrol. However, the refinery warns that if local traders and NNPC do not start buying, these petrol products will also be exported, similar to the diesel and jet fuel currently leaving the country.
Chairman Laments Local Resistance
Aliko Dangote, Chairman of the Dangote Group, has previously criticised efforts by certain groups within the oil and gas industry to frustrate the refinery’s progress. He reiterated that the refinery is designed to refine crude oil locally and provide petroleum products to Nigerians, but the refinery’s ambition is being undermined by a lack of support from industry stakeholders.
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