The Dangote Petroleum Refinery, Nigeria’s largest private oil refinery, is poised to commence the sale of Premium Motor Spirit (PMS), commonly known as petrol, according to industry sources. This development follows recent test runs of the product at the 650,000 barrels per day capacity refinery.
Anonymous sources within the industry have confirmed that the Dangote Group and the Nigerian government are currently finalizing the modalities for the circulation of the product. A government insider revealed that the sale and distribution of PMS is being coordinated with the Federal Government, with the Nigerian National Petroleum Company Limited (NNPC) expected to be the sole authorized distributor of Dangote’s fuel initially.
The refinery’s entry into the market has been delayed since June due to crude oil shortages and a dispute with the Nigerian Midstream and Downstream Regulatory Authority over allegations of substandard diesel production. However, recent government intervention ensuring crude oil supply to the refinery in local currency appears to be yielding positive results.
The Dangote Group has previously accused international oil companies of reluctance to sell crude to local refiners, alleging that foreign producers prioritize Asian countries in selling Nigerian-produced crude. The group also claimed that international oil companies insisted on selling crude through foreign agents at prices $2 to $4 per barrel above the official Nigerian Upstream Petroleum Regulatory Commission (NUPRC) price.
A recent disagreement between Dangote and the NUPRC over the alleged supply of 29 million barrels of crude oil to the refinery has added complexity to the situation. While the NUPRC stated it had facilitated this supply between January and June 2024, Dangote Group spokesperson Anthony Chiejina denied receiving this quantity, acknowledging only one crude cargo facilitated by NUPRC from a domestic producer.
The imminent launch of Dangote’s petrol sales has sparked hope among Nigerians for a potential reduction in fuel prices. As Africa’s largest oil producer, Nigeria has long struggled with fuel scarcity and price fluctuations, often relying on imports due to insufficient domestic refining capacity.
The Dangote Petroleum Refinery’s entry into the market represents a significant milestone in Nigeria’s efforts to achieve self-sufficiency in fuel production and reduce dependency on imports. Industry watchers and consumers alike are keenly anticipating the impact this development will have on the country’s energy sector and economy at large.
Credit: Punchng.com
