Nigeria’s Dangote Petroleum Refinery says it is increasing output to meet domestic petrol and diesel needs, following the Federal Government’s approval of a new 15% fuel import duty aimed at protecting local refining.
The government, in a memo released this week, said the tariff would support the country’s long-standing goal of ending dependence on imported fuel and shield recent multi-billion-dollar refinery investments.
Anthony Chiejina, spokesperson for the Dangote Group – which invested about $20 billion in the 650,000 barrels-per-day facility – said the new duty would help curb the inflow of low-quality imported fuel.
He noted that despite earlier setbacks due to cheaper imports, the refinery is now scaling operations.
“We are currently loading over 45 million litres of petrol and 25 million litres of diesel per day, which is already more than Nigeria’s daily requirement,” Chiejina said.
Petrol production from the plant began in September 2024, a development that has helped stabilise pump prices and reduce shortages nationwide. However, independent fuel marketers argue that lower prices from the refinery are also being used to squeeze them out of the market.
Some traders warn that if the tariff is not carefully implemented, it could suffocate importers who help keep prices competitive.
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Billy Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), said:
“Importers have been a crucial check against price manipulation. If they are forced out and refineries are not properly regulated, we risk creating a monopoly that could hurt consumers in the long run.”
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Source:Africa Publicity
