The Dangote Petroleum Refinery is preparing to launch the sale of Premium Motor Spirit (PMS), commonly known as petrol, just days after completing a test run of the product.
Industry sources have informed our correspondent that the product will soon be available on the market. The sources, who requested anonymity, indicated that the Dangote Group and the government are finalizing the distribution plans.
According to a government source, the Federal Government is coordinating with the Dangote Group regarding the sale and distribution of the PMS, with the Nigerian National Petroleum Company Limited being designated as the sole distributor for now.
The launch of petrol from the Dangote refinery was initially expected in June, but delays were caused by a crude oil shortage and a dispute with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which had accused the refinery of producing substandard diesel. However, the intervention of the federal government, which now requires crude oil payments in local currency, appears to be resolving these issues.
There have been ongoing accusations from Dangote and other local refineries against international oil companies for not supplying crude oil locally. The Federal Government recently announced that the crude oil supply deal is set to begin in October.
The Dangote Group has also alleged that international oil companies are attempting to sell crude through foreign agents at prices $2 to $4 per barrel above the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) official rates. Additionally, they claimed that these foreign producers are prioritizing sales to Asian markets.
Last month, there was a dispute between the Dangote refinery and the NUPRC over the supply of 29 million barrels of crude oil. The Dangote Group accused the NUPRC of not effectively enforcing Domestic Crude Supply Obligations, claiming insufficient local crude supply. In response, the NUPRC stated it had facilitated the supply of over 29 million barrels to the Dangote refinery from January to June 2024, using the monthly production curtailment platform.
The NUPRC’s claims were promptly countered by the Dangote Group, which denied receiving the 29 million barrels of crude. Anthony Chiejina, spokesperson for the Dangote Group, acknowledged the NUPRC’s statement but confirmed that they had not yet received the specified cargoes.
“Aside from the term supply we bilaterally negotiated with NNPCL, so far NUPRC has only facilitated the purchase of one crude cargo from a domestic producer. The rest of the cargoes we have processed were purchased from international traders.”
Chiejina added that all the refinery was asking for was for refineries in Nigeria to buy crude directly from the companies that produce it in Nigeria rather than from international middlemen.
Nigerians are hopeful that Dangote will crash the pump price of PMS.
