The Dangote Petroleum Refinery has threatened to export excess petrol stocks as rising imports create uncertainty around domestic demand and make inventory planning increasingly difficult.
The refinery said imported Premium Motor Spirit (petrol) accounted for approximately 43 per cent of fuel supplied into the Nigerian market in July, despite its capacity to meet and exceed domestic demand.
It said the continued issuance of petroleum product import licences had created uncertainty in demand planning and inventory management, forcing it to reconsider how much petrol it should keep in stock for the domestic market.
According to the refinery, it has consistently maintained sufficient inventory and reserved product volumes to guarantee steady supply to the Nigerian market since commencing operations. It said this had required significant investments in storage, logistics and working capital.
However, the company said the lack of transparency over the volume of imported petrol expected into the country was making it difficult to plan production and inventory efficiently.
