The Dangote Petroleum Refinery is poised to launch the sale of Premium Motor Spirit (PMS), commonly known as petrol, following a recent test run of the product. Industry sources have confirmed that the product will soon be available in the market. The refinery, which has a production capacity of 650,000 barrels per day, is finalizing details with the government on the distribution and sale of the fuel.
Currently, the Nigerian National Petroleum Company Limited (NNPCL) will be the sole authorized seller of the Dangote fuel. This decision comes after a series of challenges faced by the refinery, including a shortage of crude oil and disputes with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) over alleged substandard diesel production.
The Federal Government’s intervention to supply crude oil to the refinery in local currency appears to be making progress. Dangote and other local refineries have criticized international oil companies for not supplying crude oil directly to local refiners, which they argue has led to increased costs.
The crude oil supply agreement, initially scheduled to begin in June, was delayed due to these issues. The Federal Government has announced that the deal will commence in October. Dangote Group had also accused international oil companies of prioritizing Asian markets and selling crude oil to Nigerian refineries at inflated prices.
A recent dispute between the Dangote Group and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) centered around the alleged supply of 29 million barrels of crude oil to the refinery. The Dangote Group has denied receiving this volume of crude, stating that they have only been able to purchase a limited amount from domestic sources, with the majority coming from international traders.
Despite these setbacks, the Dangote Group remains hopeful that the refinery will significantly impact fuel prices in Nigeria. The public anticipates that the commencement of sales from the Dangote refinery will lead to a reduction in the pump price of PMS, benefiting consumers across the country.
WRITTEN BY; CHRISTOPHER