Dangote Refinery supplies 40 million liters of gasoline daily amid shortfall concerns
- Nigeria is facing a 9.8 million litres per day shortfall in domestic gasoline production, which is currently being supplemented by imports.
- The Dangote Petroleum Refinery distributes over 40 million litres of gasoline daily, and despite rumors of supply disruptions,
- Gasoline consumption in Nigeria has decreased from 66.9 million litres per day in early 2023 to 49.8 million litres by September 2024
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
There has been an estimated shortfall of 9.8 million litres per day in Nigeria's domestic refining of Premium Motor Spirit (PMS), commonly referred to as gasoline.
Source: Getty Images
Industry insiders stated that, in order to avoid any disruptions in the nation's petrol supply network, the imbalance is currently being filled through imports.
In addition to consistent amounts of Automotive Gas Oil (diesel), the Dangote Petroleum Refinery said over the weekend that it currently distributes more than 40 million litres of gasoline per day to the domestic market.
“As the world’s largest single-train petroleum refinery, the facility employs advanced predictive and preventive maintenance protocols to ensure uninterrupted operations. Routine maintenance activities are standard and do not impact the overall fuel supply,” the statement further clarified.
The refinery urged those spreading the rumor to place orders for daily deliveries of up to 40 million litres of PMS and 15 million litres of diesel for the following ninety days in response to concerns about possible supply shortages and price hikes.
“To those who believe this misinformation and anticipate a bullish market, we extend a challenge: We invite interested buyers to place immediate orders for up to 40 million litres of PMS daily and 15 million litres of AGO daily, for the next 90 days.”
The refinery reiterated its dedication to transparency and Nigeria's energy security, advising the public to ignore baseless rumors propagated by dishonest and disloyal individuals who want to sabotage the nation's energy independence for their own self-serving ends, including importing inferior fuels under the fictitious guise of shortages in domestic supplies.
However, Mr. Farouk Ahmed, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), recently revealed that the average daily consumption of gasoline in Nigeria has decreased to 49.8 million litres.
The average amount of gasoline consumed dropped from 51.8 million litres per day between January and August 2024 to 49.8 million litres per day as of September 2024, according to Ahmed.
When subtracted from the 40 million litres that the Dangote Petroleum Refinery supplies to the domestic market each day, the 49.8 million litres indicate a 9.8 million-litre daily gap.
The CEO of the NMDPRA stated that, because gasoline subsidy payments were stopped, "the nation now has excess funds for other sectors." He also linked the drop in gasoline usage to fewer drivers due to the product's increased cost.
Farouk provided additional details on the consumption data, stating that, as of May 2023, Nigeria's average daily gasoline usage had dropped from 66.9 million litres to 49.8 million litres.
According to him, the nation's daily sufficiency was 48.71 million litres as of 2015. About 48.9 million litres were used in 2016, 50.2 million litres in 2017, 53.5 million litres in 2018, and 56.4 million litres in 2019, according to Ahmed.
According to Ahmed, the nation's daily gasoline usage dropped to 55.6 million litres in 2020 before rising once again to 61.9 million litres in 2021 and 66.7 million litres in 2022.
The NMDPRA CEO stated that the nation's average daily gasoline consumption was 66.9 million litres between January 2023 and May 2023, when the gasoline subsidy was eliminated, which he characterised as "very high."
“So, first of all, the price (of petrol) was low, the borders were porous, the price in the neighboring countries was high because it was easy to cross, and even locally, the naira value was low because the naira was subsidized against the dollar,” Ahmed said.
Source: UGC
Fuel usage fell to 47.5 million litres per day between June 1, 2023, and December 2023, according to Ahmed, "because the subsidy was gone, and so the market curtailed itself."
He claimed that between January 2024 and August 2024, the daily use of gasoline increased to 51.8 million litres.
According to Ahmed, the average daily usage of gasoline has decreased to 49.8 million litres since September 2024.
Dangote Refinery refutes shutdown allegations
Legit.ng reported that recent claims that the Dangote Petroleum Refinery had shut down have been emphatically denied.
The company assured Nigerians and market participants that production and supplies are still running smoothly.
The refinery management flatly disputed allegations that its production line was idle or that truck loading operations had been suspended in a statement released by Group Chief Branding and Communications Officer, Anthony Chiejina
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
