Dangote Refinery Struggles to Gain Traction in Nigeria's Fuel Market Amid Low Patronage and Export Focus
The Dangote Refinery, Nigeria's largest petroleum refinery, is facing significant challenges in selling its products locally, despite having the capacity to meet the country's fuel demands. According to Devakumar V. G. Edwin, Vice President of Dangote Industries Limited, the refinery is struggling to sell around 29 tankers of diesel per day due to low patronage from local petroleum product importers.
This lack of support from local importers has forced the refinery to export most of its diesel and aviation fuel, despite having the capacity to meet 44% of Nigeria's petrol production demands. The refinery has had to import around 57 shiploads of crude, as local supply from the NNPC remains limited.
Furthermore, petroleum product marketers in Nigeria have complained to President Bola Tinubu that the refinery's local diesel prices, which have dropped from N1,200 to N1,000 and now to N900 per litre, are negatively impacting their businesses.
The situation raises concerns about Nigeria's fuel supply and prices, as well as the country's reliance on imported petroleum products. The Dangote Refinery's struggles to gain traction in the local market highlight the need for a comprehensive review of Nigeria's fuel policy and supply chain management.
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