The Dangote Petroleum Refinery is poised to start selling Premium Motor Spirit (PMS), commonly known as petrol. This development follows a successful test run of the product by the refinery, which has a capacity of 650,000 barrels per day.
Industry insiders revealed that the product will soon be available in the market. Discussions are ongoing between the Dangote Group and the Federal Government to finalize the distribution modalities. Currently, only the Nigerian National Petroleum Company Limited (NNPCL) will be authorized to sell the Dangote petrol.
The rollout of Dangote’s petrol was initially scheduled for June but faced delays due to crude oil shortages and a dispute with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA). The NMDRA had accused the refinery of producing substandard diesel. However, recent government intervention, including supplying crude oil in local currency, appears to have resolved these issues.
The Federal Government recently announced that crude oil supply deals would begin in October, addressing concerns from local refiners about inadequate crude oil supplies. Dangote and other local refineries have criticized international oil companies for not selling crude oil directly to them, instead preferring to sell to foreign agents or prioritize Asian markets.
The Dangote Group has also clashed with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over crude oil allocations. Dangote accused the NUPRC of failing to enforce domestic crude supply regulations, claiming the refinery has not received sufficient local crude. The NUPRC countered by stating that over 29 million barrels of crude oil were supplied to Dangote from January to June 2024, facilitated through a monthly production curtailment platform.
Dangote spokesperson Anthony Chiejina acknowledged receipt of NUPRC’s allocation but stated that the refinery has only received one domestic cargo, with the remainder purchased from international traders. He emphasized the need for Nigerian refineries to source crude directly from local producers rather than through international middlemen.
As the Dangote refinery prepares to launch its PMS sales, there is growing optimism that it will lead to a reduction in petrol prices for Nigerian consumers.