The Dangote Petroleum Refinery has increased exports of refined fuel to foreign markets due to domestic crude supply shortages and difficulty converting local currency into foreign exchange.
The 650,000 barrels per day facility in Nigeria has received reduced crude oil supplies under the local currency crude sales agreement with the federal government, forcing management to ship more finished products abroad.
To maintain production levels, the refinery has been purchasing raw crude from international suppliers. However, selling finished fuel locally in naira has made it difficult for the refinery to secure the foreign exchange needed to pay international suppliers for raw oil deliveries.
Impact on local operations and crude supply
Rising international crude oil prices have also increased the cost of purchasing raw material for oil refiners worldwide.
