The Dangote Petroleum Refinery concluded August with a substantial stock of 630.9 million litres of refined petroleum products. This inventory comprised 360.4 million litres of Premium Motor Spirit (petrol), 137.2 million litres of automotive gas oil (diesel), and 133.3 million litres of aviation turbine kerosene (aviation fuel). According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), these figures indicate a significant holding of petroleum products by the refinery.
Petrol imports into Nigeria experienced a notable decline in August. The NMDPRA reported that average daily Premium Motor Spirit (PMS) imports fell by 26 per cent from 19.7 million litres in July to 14.6 million litres in August. Conversely, domestic PMS receipts saw an increase of 39 per cent from 25.8 million litres per day in July to 35.9 million litres in August. This surge in domestic supply led to a total PMS receipts increase of 11 per cent from 45.5 million litres per day in July to 50.5 million litres in August.
The Dangote refinery significantly contributed to Nigeria's PMS receipts in August, accounting for about 71 per cent of the country's total. The refinery supplied almost 36 million litres of petrol daily to the domestic market. With an average production of 41.94 million litres of PMS daily, the refinery supplied 35.87 million litres to the domestic market and exported 9.73 million litres daily. Its average capacity utilisation stood at 105.21 per cent during August.
Diesel imports experienced a sharp decline in August, falling by 84 per cent from 7.9 million litres per day in July to 1.3 million litres. Additionally, PMS consumption decreased by 14 per cent from 48.3 million litres per day in July to 41.5 million litres in August. The NMDPRA based these consumption figures on volumes trucked into the domestic market.
Petrol stock sufficiency in Nigeria improved marginally from 22.4 days in July to 22.9 days in August. Diesel stock sufficiency saw a more significant increase from 46.5 days to 51.6 days. The rise in domestic refining coincided with higher crude oil receipts by local refineries, which increased by 17 per cent from 585,000 barrels per day in July to 683,000 barrels per day in August.
Between January and August, domestic refineries received 137.98 million barrels of feedstock. This comprised 109.88 million barrels of domestic crude and 28.10 million barrels of imported seaborne crude. Domestic crude accounted for 79.64 per cent of total refinery feedstock during this eight-month period. Notably, none of the three state-owned refineries operated by the Nigerian National Petroleum Company Limited produced during August.
The Dangote refinery had previously expressed concerns over continued imports and the difficulty of planning its inventory due to uncertainty over the volume of imported products entering the Nigerian market. The refinery threatened to export excess petrol stocks, citing the need to maintain sustainable inventory levels. The situation highlights the tension between domestic refining capacity and continued reliance on imported petroleum products.
Key points
- Dangote refinery's stock of 630.9 million litres of refined petroleum products.
- 71 per cent of Nigeria's PMS receipts in August came from Dangote refinery.
- Petrol imports declined by 26 per cent in August.
