Dangote’s Fuel is Set for Rollout.
The Dangote Petroleum Refinery is preparing to launch the sale of Premium Motor Spirit (PMS), commonly referred to as petrol, as reported by authoritative sources. This development follows a recent test-run of the product at the refinery, which has a capacity of 650,000 barrels. Industry insiders have indicated that the product will soon be available in the market.
According to anonymous sources, the government and the Dangote Group are currently finalizing the details for the distribution of the petrol. At this stage, only the Nigerian National Petroleum Company Limited will be permitted to sell the Dangote fuel. There were earlier expectations that petrol from the Dangote refinery would be on the market by June; however, delays occurred due to crude oil shortages and disputes with the Nigerian Midstream and Downstream Regulatory Authority over the production of substandard diesel.
The Federal Government’s intervention, which allows for the supply of crude oil to the refinery in local currency, seems to be producing positive results. This shift is anticipated to facilitate smoother operations at the refinery and enhance fuel availability.
Additionally, the Dangote Group has repeatedly accused international oil companies (IOCs) of not supplying crude to local refiners. This issue has been a significant barrier to local refining efforts, as it affects the overall production capacity and pricing of fuel.
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In a related development, the Federal Government recently announced that a crude oil supply deal is set to begin in October. This agreement is expected to improve the situation for local refineries and ensure a more consistent supply of crude oil.
The management of Dangote Group has expressed concerns that IOCs insist on selling crude oil through foreign agents, which complicates the procurement process. This practice has contributed to rising local prices for crude oil, as trading arms often offer cargoes at prices exceeding the official rates set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
As the situation unfolds, stakeholders are closely monitoring the progress of the Dangote refinery and its impact on the local fuel market. The anticipated rollout of petrol is seen as a critical step in enhancing Nigeria’s refining capabilities and reducing dependency on imported fuel.
