Nigeria imported about 43 per cent of its petrol supply in July despite the Dangote Petroleum Refinery’s 650,000-barrel-per-day capacity.
Dangote has now restricted petrol sales to six NMDPRA-licensed importers: Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.
NMDPRA authorised the six companies to import petrol, with a combined allocation of about 720,000 metric tonnes, according to industry reports. Dangote will prioritise sales to marketers without active import licences.
The restriction comes as petrol imports take a larger share of the market. Imports accounted for about 12 per cent of supply in May and 43 per cent in July. Domestic petrol supply fell from 32.5 million litres per day in June to 25.8 million litres per day in July, while imports increased from 18.1 million litres per day to 19.7 million litres per day.
Dangote has linked the import volumes to its production and inventory plans. The refinery has warned that excess petrol could force it to export some of its output.
Crude supply has also affected the refinery’s operations.
Dangote said it needed 15 crude cargoes for September but received six from NNPC. It said international oil companies operating in Nigeria directed it to their international trading arms or said their cargoes had already been committed.
Dangote said it often buys Nigerian crude through international traders at an additional $3-$4 per barrel.
NUPRC data showed a similar gap in the second quarter. Producers offered Dangote 68.1 million barrels against its 63 million-barrel requirement, but the refinery accepted 52.6 million barrels.
The refinery can process 650,000 barrels per day, but crude supply determines how much it can process.
Imports supplied 43 per cent of Nigeria’s petrol in July. Dangote’s restriction now affects six licensed importers that had supplied part of the market.
