The Dangote Petroleum Refinery is poised to begin the sale of Premium Motor Spirit (PMS), commonly known as petrol, following successful test runs of the product. Industry insiders have confirmed that the fuel will soon be available on the market, with discussions currently underway between the Dangote Group and the Nigerian government to finalize distribution details.
According to sources, who spoke on the condition of anonymity, the Nigerian National Petroleum Company Limited (NNPCL) will be the exclusive distributor of Dangote’s petrol for the time being. The rollout comes after months of delays, initially expected in June, due to crude oil shortages and disputes with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which had previously criticized the refinery for producing substandard diesel.
The Federal Government’s intervention, allowing crude oil to be supplied to the refinery in local currency, appears to have resolved some of the supply issues. This move marks a significant step forward in the refinery’s operations, which have faced challenges from international oil companies (IOCs) unwilling to sell crude directly to local refiners.
Recently, the government announced that a new crude oil supply deal, slated to begin in October, would ensure a steady supply to the Dangote refinery. However, tensions remain, with the Dangote Group alleging that IOCs prioritize selling Nigerian crude to Asian markets at inflated prices, forcing local refiners to rely on international intermediaries.
In a related development, a dispute between the Dangote Group and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) surfaced over the alleged supply of 29 million barrels of crude oil to the refinery. While the NUPRC claims it facilitated this supply from January to June 2024, the Dangote Group disputes this, asserting that they have yet to receive the promised crude.
Anthony Chiejina, spokesperson for the Dangote Group, acknowledged the NUPRC’s efforts but clarified that only one crude cargo from a domestic producer had been received, with the rest purchased from international traders. Chiejina emphasized the need for local refineries to buy crude directly from Nigerian producers rather than through foreign middlemen.
Amid these developments, Nigerians are optimistic that the entry of Dangote’s petrol into the market will lead to a reduction in the pump price of PMS.
