
The much-anticipated rollout of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery is set to commence soon.
This development follows a successful test run of its petrol production at the refinery, which boasts a capacity of 650,000 barrels per day.
Despite initial plans to launch in June, the project faced delays due to crude oil shortages and disputes with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA).
The regulatory body had accused the refinery of producing substandard diesel, further complicating the situation. However, progress has been made following the Federal Government's directive to supply crude to the refinery in local currency.
A government source, who wished to remain anonymous, disclosed that the Federal Government and the Dangote Group are currently ironing out the details regarding the distribution and sale of the petrol. It was also revealed that the Nigerian National Petroleum Company Limited (NNPCL) would be the sole distributor of the Dangote-produced fuel at this stage.
Anthony Chiejina, the spokesperson for the Dangote Group, emphasized the challenges faced by the refinery, stating, "We appreciate the allocation, but we are yet to receive the majority of these cargoes. We believe Nigerian refineries should have direct access to locally produced crude rather than relying on international middlemen."
The Dangote Group has long voiced its frustrations over international oil companies' (IOCs) refusal to sell crude to local refiners, opting instead to sell through foreign agents.
This practice has led to inflated local crude prices, with IOCs allegedly prioritizing Asian markets over Nigerian refineries.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently claimed it had facilitated the supply of over 29 million barrels of crude to the Dangote refinery between January and June 2024.
However, the Dangote Group refuted this claim, stating that only one crude cargo had been supplied domestically, while the rest had to be purchased from international traders.
z Refinery to Launch Petrol Production Amid Crude Supply Challenges
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