By UdemeAkpan, Energy Editor
The Dangote Petroleum Refinery has significantly increased exports of refined petroleum products as inadequate domestic crude oil supply and persistent foreign exchange constraints continue to hamper its operations.
This comes as rising global crude oil prices are expected to increase feedstock costs for the 650,000-barrels-per-day refinery, although stronger prices for refined petroleum products are providing some support for refining margins.
Checks by Vanguard showed that crude oil supply to the refinery under the Federal Government’s naira-for-crude arrangement has declined sharply, compelling the refinery to source a larger share of its feedstock from the international market.
The investigation also revealed that although the refinery continues to sell petroleum products in naira to support the domestic market, it has been unable to convert a significant portion of its naira proceeds into U.S. dollars needed to procure crude oil from international suppliers.
