Dangote Petroleum Refinery Set to Launch Premium Motor Spirit Sales
Lagos, Nigeria – The Dangote Petroleum Refinery is preparing to commence the sale of Premium Motor Spirit (PMS), commonly known as petrol, according to authoritative sources. This development follows recent test runs of the product at the refinery, which has a capacity of 650,000 barrels per day.
Industry insiders have confirmed that the product will soon be available on the market. Discussions are ongoing between the Dangote Group and the Federal Government regarding the sale and distribution logistics. It has been revealed that the Nigerian National Petroleum Company Limited (NNPCL) will be the sole distributor of the Dangote fuel initially.
This move comes after delays in the refinery’s operations, which were supposed to have begun by June. The delays were attributed to crude oil shortages and a dispute with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which had accused the refinery of producing substandard diesel.
The Federal Government’s recent decision to supply crude oil to the Dangote refinery in local currency appears to be making progress. The Dangote Group has previously criticized international oil companies (IOCs) for allegedly prioritizing sales to Asian markets and selling crude oil at inflated prices to local refiners.
Additionally, the Dangote Group had contentious exchanges with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the supply of crude oil. The NUPRC claimed to have facilitated the delivery of 29 million barrels of crude oil to the Dangote refinery from January to June 2024. However, the Dangote Group denied receiving this amount, attributing their crude purchases largely to international traders.
Spokesperson for the Dangote Group, Anthony Chiejina, acknowledged the NUPRC’s allocation but stated that the refinery had only received one cargo of crude from domestic sources, with the rest sourced from international suppliers. The group emphasized their preference for direct purchases from Nigerian crude producers rather than through foreign middlemen.
Nigerians are optimistic that the commencement of petrol sales by the Dangote Refinery could potentially reduce fuel prices at the pump.
