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Dangote to begin sales of Petrol

Dangote Refinery

The Dangote Petroleum Refinery is set to begin selling Premium Motor Spirit (PMS), commonly known as petrol, according to The PUNCH.

This follows a test run of the product at the 650,000-barrel capacity refinery.

Industry sources have confirmed that the product will soon be available in the market. The government and Dangote Group are currently finalizing the distribution details, with the Nigerian National Petroleum Company Limited being the sole authorized seller for now.

Initially, the refinery’s petrol was expected to launch in June.

However, the refinery faced challenges, including a crude oil shortage and disputes with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) over the quality of diesel produced.

Recent developments suggest that the government’s push for local currency transactions for crude oil may be starting to bear fruit. The Federal Government has announced that the crude oil supply deal is set to commence in October.

Dangote Group has accused international oil companies (IOCs) of selling crude oil to the refinery through foreign agents at prices higher than the official rate, while favoring Asian markets.

The Dangote Group had earlier clashed with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the alleged supply of 29 million barrels of crude oil.

NUPRC claimed it facilitated this supply, but Dangote Group disputes this, stating they have only received a single cargo of domestic crude and most of their supplies have been from international traders.

The public hopes that the Dangote refinery’s entry into the market will lead to a reduction in petrol prices.

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