Dangote Refinery has expressed challenges in selling diesel locally due to low patronage from petroleum marketers. After commencing production, the refinery reduced the price of diesel from N1,200 to N1,000, and later to N900 per litre to increase sales. However, the refinery has been forced to export most of its diesel and aviation fuel due to the lack of interest from Nigerian marketers.
Devakumar Edwin, Vice President of Dangote Industries Limited, highlighted these difficulties during a X Spaces session organized by Nairametrics, as reported by BusinessDay. Edwin revealed that over 95% of Nigeria’s petroleum product importers are not purchasing from the Dangote Refinery, resulting in the struggle to sell around 29 tankers of diesel daily.
This poor domestic patronage has led to the decision to export most of its products. Edwin also mentioned that Nigerian petroleum marketers have raised formal complaints with President Bola Tinubu, criticizing Dangote’s pricing strategy as harmful to their businesses. The refinery’s recent price cuts, from N1,200 to N1,000 and now N900 per litre, were intended to boost competitiveness but have instead sparked tensions with local marketers.
Edwin warned that if the Nigerian National Petroleum Company Limited (NNPC) and other petroleum dealers continue to avoid purchasing from Dangote Refinery, the company will prioritize exporting its products.