The Dangote Petroleum Refinery is set to begin the sale of Premium Motor Spirit (PMS), commonly known as petrol, The PUNCH has learned authoritatively.
This development follows a successful test run of the product at the 650,000-barrel-per-day refinery.
Industry insiders have confirmed that the product will soon enter the market, with sources close to the situation indicating that both the government and the Dangote Group are finalizing the details for its distribution.
A government official, who requested anonymity, revealed that the Nigerian National Petroleum Company Limited (NNPCL) would initially be the sole distributor of the Dangote refinery’s petrol.
It is noteworthy that petrol from the Dangote refinery was originally expected to be available by June. However, delays arose due to a crude oil shortage and a dispute with the Nigerian Midstream and Downstream Regulatory Authority, which had accused the refinery of producing substandard diesel.
The situation improved following the Federal Government’s directive that crude oil be supplied to the refinery in local currency.
Additionally, the Dangote Group and other local refineries have long accused international oil companies (IOCs) of refusing to sell crude oil to Nigerian refiners.
The Federal Government recently announced that a crude oil supply deal would commence in October, which may alleviate some of these concerns.
The Dangote Group has also raised concerns about IOCs prioritizing sales to Asian countries, thereby neglecting local refiners.
Last month, The PUNCH reported on a dispute between the Dangote refinery and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) regarding the alleged supply of 29 million barrels of crude oil.
In response to NUPRC’s claims that it had facilitated the supply of this crude to the Dangote refinery, the company’s spokesperson, Anthony Chiejina, stated, “We acknowledge the NUPRC’s statement regarding the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals. However, we have yet to receive these cargoes.”
Chiejina further explained that aside from a term supply negotiated with NNPCL, the refinery had only received one crude cargo facilitated by NUPRC, with the rest being purchased from international traders.
He emphasized that the refinery’s request is for Nigerian refineries to buy crude directly from domestic producers rather than through international intermediaries.
As Nigerians anticipate the potential impact of Dangote’s entry into the petrol market, many are hopeful that it will lead to a reduction in the pump price of PMS.
