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There is authoritative confirmation that the Dangote Petroleum Refinery will soon commence the sale of Premium Motor Spirit, commonly referred to as petrol.
A few days after the 650,000-capacity refinery conducted a test-run of their product, this update is being released.
Our correspondent received confirmation from industry sources that the product’s release was imminent.
Our correspondent was informed by anonymous sources that the government and Dangote Group were collaborating to establish a plan for distributing the product.
It was suggested by a government insider that the Federal Government is currently addressing the issue of selling and distributing PMS.
At present, the sale of Dangote fuel will be exclusively authorized to the Nigerian National Petroleum Company Limited, according to the source.
Remember that the release of petrol from Dangote refinery was anticipated in June; however, due to a shortage of crude oil and an argument with Nigerian Midstream and Downstream Regulatory Authority over the production of substandard diesel, it became delayed.
It appears that the Federal Government’s intervention to ensure crude oil is provided to local refineries in domestic currency has been effective.
It is remembered that Dangote and other domestic refineries have frequently alleged that international oil companies refuse to supply them with crude.
In October, the crude oil supply deal is set to begin as announced by the Federal Government in recent times.
According to the Dangote Group’s leadership, the IOCs maintained their demand for selling crude oil exclusively via foreign agents, resulting in a continued increase of local crude prices. They claimed that trading arms were offering cargoes at rates exceeding NUPRC official price by $2-$4 per barrel.
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According to the group, foreign oil producers appear to be giving priority to Asian countries when it comes to selling Nigerian crude.
Last month, it was reported that the Nigerian Upstream Petroleum Regulatory Commission and Dangote refinery had a verbal confrontation regarding accusations surrounding the provision of 29 million barrels of crude oil to the said refinery.
According to the Dangote Group, the NUPRC has not adequately enforced regulations pertaining to Domestic Crude Supply Obligations. Consequently, they claim that sufficient local crude oil is still unavailable for the refinery’s needs.
In response, the NUPRC refuted the assertion by revealing that it had enabled Dangote to receive more than 29 million barrels of crude oil between January and June 2024.
Using the monthly production curtailment platform, the NUPRC claimed that it enabled Dangote refinery and other refineries to have access to domestic crude oil supply.
The Dangote Group promptly refuted the claim that they had received 29 million barrels of crude oil from any origin.
The spokesperson for the Dangote Group, Anthony Chiejina stated that they had been notified by NUPRC of their successful facilitation in securing an allocation of 29 million barrels of crude oil for the Dangote Petroleum Refinery and Petrochemicals. While appreciating this gesture, he informed them that so far no cargoes have been received yet.
Apart from the supply arrangement we made with NNPCL through bilateral negotiations, our procurement efforts at NUPRC have been limited to facilitating only one purchase of domestic crude cargo. All other cargoes were obtained via transactions with overseas traders.
Chiejina stated that the refinery’s sole request was for Nigerian refineries to purchase crude directly from domestic producers instead of relying on foreign intermediaries.
There is optimism among Nigerians that Dangote will lower the cost of PMS at gas stations.
