In a bold challenge to oil marketers, the Dangote Refinery has declared it is holding over 310 million litres of Premium Motor Spirit (petrol), directly confronting speculation that supply shortages are behind a recent sharp increase in pump prices across Nigeria.
The statement from the refineryโs Vice President, Devakumar Edwin, comes as petrol prices surged over the weekend, climbing from around N865 per litre to nearly N1,000 in many areas, despite relative stability in both global crude oil prices and the Naira-to-Dollar exchange rate.
During a facility tour on Friday, Edwin issued a direct invitation to marketers, asserting that the refinery has ample supply for both the domestic market and export. He suggested that some marketers may be capitalizing on false narratives to justify price hikes.
โSo, this one is again a campaign to try to say the prices will go up. I can go and try to increase my filling station price; maybe Dangote is not supplying. Bring your tankers. We will load. Any number of tankers you bring, weโll load. Itโs a challenge Iโm throwing today,โ Edwin stated emphatically.
โNo one can come and tell me Iโm not loading. We can load any number of tankers you bring. So, you can see whether I have the capacity to produce or not. We have more than 310 million litres as of now,โ he stressed.
The price increase has confused many Nigerians and industry observers. Data shows that the Naira has strengthened, trading around N1,470 to a dollar compared to over N1,700 earlier in the year, while Brent crude oil has fallen to around $60 per barrel. This combination would typically suggest the potential for lower, not higher, fuel prices.
Edwin also addressed why the refinery sometimes reduces its crude oil intake, clarifying that it is a strategic inventory management decision, not a sign of operational failure.
โWhen the prices are a bit low, we buy a lot. When our stocks are going down, we buy a lot. But at the same time, if your inventory of crude is very high, nobody would like to lock so much money into their tanks, because itโs money locked in the form of crude oil. So, we reduce our inflow, which is what happened,โ he explained.
He firmly dismissed rumours of significant production problems. โThey said we have problems. No factory works 100 per cent every day without a problemโฆ So, normally all these major businesses have what we call turnaround maintenanceโฆ But here, as I was explaining, I have more than 310 million litres of PMS as of today inside my tanks, apart from the production which is coming out every day,โ he emphasised.
Reaffirming the refinery’s massive scale, Edwin stated that the facility has the โcapacity to supply the 100 per cent requirement of diesel, PMS, and aviation fuel needed in Nigeria and still exports almost 50 per cent of its production overseas.โ
Despite this claimed abundance, the refinery itself has increased its gantry price to marketers from N820 to about N870 per litre, a move that has contributed to the higher prices seen at filling stations nationwide. The Nigerian National Petroleum Company Limited retail outlets, for instance, increased their pump price to N928 per litre before a slight reduction to N920 over the weekend.
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