Dangote Petroleum Refinery to Roll Out Petrol Sales
The Dangote Petroleum Refinery is set to begin selling Premium Motor Spirit (PMS), also known as petrol, after a successful test run. Industry sources confirm that the product will hit the market soon, with the government and Dangote Group working out distribution modalities.
Background
The refinery, with a 650,000 capacity, was initially expected to start selling petrol in June but faced crude oil shortages and disputes with the Nigerian Midstream and Downstream Regulatory Authority. The Federal Government’s intervention, supplying crude oil in local currency, has helped resolve these issues.
Challenges
Dangote and other local refineries have accused international oil companies of not selling crude oil to them. The Federal Government has announced a crude oil supply deal starting in October.
Controversy
The Dangote Group alleged that foreign oil producers prioritize Asian countries for crude oil sales. A dispute with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over crude oil supply has been ongoing, with both parties denying and confirming allocations.
Hope for Lower Pump Prices
Nigerians hope that Dangote’s entry into the market will lead to lower pump prices for PMS.
