Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPCL) has revealed that the Dangote Refinery has been unable to supply the expected volume of Petroleum Motor Spirit (PMS) to the nation, leading to a shortfall that may force the country back to fuel importation.
According to NNPCL’s spokesperson, Olufemi Soneye, only 10.3 million litres of PMS have been received from Dangote Refinery, far below the expected 25 million litres per day, leaving the nation with a deficit of over 65 million litres.
“As of yesterday, we have received approximately 10.3 million litres. We are facing a shortfall of about 65 million litres. The plan was to receive 25 million litres per day,” Soneye said. He added that NNPCL is now assessing how to manage the shortfall in order to maintain energy security as mandated under the Petroleum Industry Act (PIA).
However, Dangote Group’s Chief Branding and Communications Officer, Anthony Chiejina, refuted NNPCL’s claims, stating, “This is outright falsehood. We load as the trucks arrive.” Chiejina did not provide detailed figures to support his assertion but maintained that Dangote Refinery has been supplying the market.
The Dangote Refinery, which began loading products on Sunday, September 15, was expected to ramp up supplies to 25 million litres per day in September and 30 million litres in October. Despite these projections, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other industry stakeholders have expressed disappointment over the volume of supply.
IPMAN President Abubakar Garima noted that while there has been a slight improvement in supply, it remains below expectations. Garima added that independent marketers are still purchasing fuel at N1,000 per litre from depots, far above the desired pricing levels. He emphasized the need for direct supply from NNPC to help alleviate the situation.
The Major Energy Marketers Association of Nigeria (MEMAN) echoed similar sentiments, confirming that fuel queues in major cities have reduced but emphasizing that the current supply is insufficient and must be sustained.
In response to the shortfall, some marketers have resumed importing fuel due to more favorable international prices. A marketer, who spoke on condition of anonymity, revealed that landing costs for imported PMS range between N900 and N1,000 per litre, prompting some to turn to international suppliers as Dangote prioritizes sales to NNPC.
Depot owners also expressed concerns, urging for a level playing field in product distribution. “We need PMS, diesel, and other products for all our stations and clients at the best possible price, with quality and fairness in distribution,” one depot owner told The Bureau.
The situation comes at a time when global refining margins are under pressure. In China, two refineries in Shandong, operated by Sinochem, were recently declared bankrupt due to weak fuel demand, highlighting the broader challenges faced by the refining sector.
With uncertainty surrounding Dangote’s supply, the resumption of fuel importation may be necessary to prevent further disruptions in Nigeria’s fuel market.