Dangote Refinery, Africa’s biggest oil refinery, is considering exporting its fuel products due to low sales in Nigeria. The refinery says local fuel marketers are complaining that the lower prices offered by Dangote are hurting their businesses.
The Dangote Refinery started operations in April 2023 and can process 650,000 barrels of oil per day. However, the refinery is only selling a small amount of its diesel fuel locally, with just 29 tanker trucks being sold each day.
Fuel marketers in Nigeria have reportedly complained to President Buhari’s successor, Bola Tinubu, that the lower prices offered by Dangote Refinery are hurting their profits. Dangote’s diesel prices have reportedly dropped from N1200 per litre to N900 per litre.
Due to the low local sales, Dangote Refinery is now considering exporting most of its diesel and aviation fuel. The refinery has already begun exporting other products like naphtha and low-sulphur fuel oil.
Dangote has also recently started producing gasoline, and the company says it will also export this fuel if it cannot find enough buyers in Nigeria.
Dangote’s decision to potentially export its fuel could significantly change how fuel is supplied and priced in Nigeria. It’s unclear yet how this will play out.
Dangote officials say they are surprised by the challenges they’ve faced since opening the refinery. The company’s goal was to refine oil in Nigeria instead of exporting it raw, but they are now struggling to get enough crude oil from within the country and have even resorted to importing crude oil from other countries.
Dangote Refinery is considering exporting its fuel products because they are not selling well in Nigeria. Local fuel marketers say the lower prices offered by Dangote are hurting their businesses. This situation could lead to a major shift in how fuel is supplied and priced in Nigeria.
