Following a successful test-run, the 650,000-barrel-per-day Dangote Petroleum Refinery is poised to commence the sale of Premium Motor Spirit (PMS), commonly known as petrol.
Industry sources, speaking anonymously to The Punch, confirmed that the product will soon enter the market.
Currently, the Dangote Group and the government are finalizing arrangements for the product’s distribution and circulation.
A government source revealed that discussions with the Federal Government are underway to settle the logistics of PMS sales and distribution.
The source added that only the Nigerian National Petroleum Company Limited would be authorised to sell the Dangote fuel at the moment.
Recall that petrol from the Dangote refinery was supposed to have been out since June, but the refinery battled crude shortage and entered into a brawl with the Nigerian Midstream and Downstream Regulatory Authority, which accused the refinery of producing substandard diesel.
The intervention of the Federal Government that crude oil should be supplied to the refinery in the local currency seems to be yielding the desired result.
Recall also, that Dangote and other local refineries have repeatedly accused international oil companies of not selling crude to the local refiners.
Recently, the Federal Government announced that the crude oil supply deal would commence in October
The management of Dangote Group also alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents, saying the local price of crude would continue to increase because the trading arms offered cargoes at $2 to $4 per barrel, above NUPRC official price.
The group also alleged that the foreign oil producers seem to be prioritising Asian countries in selling the crude they produce in Nigeria.
Earlier report last month had it that the Dangote refinery engaged in an exchange of words with the Nigerian Upstream Petroleum Regulatory Commission over the alleged supply of 29 million barrels of crude oil to the refinery.
The Dangote Group had accused the NUPRC of failing to effectively enforce the Domestic Crude Supply Obligations regulations, saying the refinery had yet to get enough crude locally.
Reacting, the NUPRC debunked the claim, stating that it facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024.
The NUPRC argued that it had facilitated the domestic supply of crude oil to Dangote refinery and other refineries using the monthly production curtailment platform.
But in a swift response, the Dangote Group also denied receiving 29 million barrels of crude from any source.
Spokesperson of the Dangote Group, Anthony Chiejina, said, “We received NUPRC’s statement that they have facilitated the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals, we would like to thank them for this allocation but at the same time, we wish to let them know that we are yet to receive these 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.
