Lagos, Nigeria — The Dangote Petroleum Refinery is poised to commence the sale of Premium Motor Spirit (PMS), commonly known as petrol, according to authoritative sources. This development follows the refinery’s recent test runs of the product.
Sources familiar with the situation have confirmed that the much-anticipated product will soon enter the market. Discussions are reportedly underway between the government and the Dangote Group regarding the distribution and sale of the fuel.
A government insider revealed that the Nigerian National Petroleum Company Limited (NNPCL) will be the sole authorized distributor of Dangote’s petrol. This arrangement is part of ongoing negotiations with the Federal Government to streamline the distribution process.
The refinery was initially expected to begin petrol production in June. However, it faced challenges, including a crude oil shortage and disputes with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which had accused the refinery of producing substandard diesel.
The Federal Government’s intervention, allowing crude oil purchases in local currency, appears to be addressing these issues. The government has also announced that crude oil supply deals will start in October.
The Dangote Group has previously accused international oil companies of prioritizing Asian markets and selling crude oil to local refineries through foreign agents. This practice, according to the group, has contributed to rising local crude oil prices.
The Dangote Group also claimed that the NUPRC (Nigerian Upstream Petroleum Regulatory Commission) failed to enforce Domestic Crude Supply Obligations effectively, resulting in inadequate local crude supply to the refinery. In response, the NUPRC asserted that it had facilitated the supply of over 29 million barrels of crude oil to the refinery from January to June 2024. However, the Dangote Group contested this, stating that they had only received one cargo of crude from domestic sources, with the remainder purchased from international traders.
As the Dangote Petroleum Refinery gears up to distribute petrol, Nigerians are hopeful that the new supply will lead to a reduction in pump prices, alleviating some of the financial burdens on consumers.
Further updates on the refinery’s petrol rollout and its impact on the Nigerian fuel market will follow.
source : punch