Reports indicate that Dangote Refinery has begun processing gasoline after delays and shortages of crude supply.
With a capacity of 650,000 barrels per day, Dangote refinery, worth $20 billion, built by billionaire businessman, Aliko Dangote, commenced operations in January.
Africa’s largest refinery aims to mitigate Nigeria’s dependence on imported oil despite being a major exporter of crude oil.
“We are testing the product (gasoline) and subsequently it will start flowing into the product tanks,” said Devakumar Edwin, a vice president at Dangote Industries Limited.
Edwin did not say when the gasoline would be available but mentioned that the Nigerian National Petroleum Company Limited (NNPCL), the country’s only importer of gasoline, would be the sole buyer of the refinery’s gasoline.
“If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel,” Edwin said.
The Dangote Refinery’s introduction of gasoline is expected to alleviate NNPC’s current difficulties in supplying the Nigerian market.
Since January, the state oil company has been struggling with debts of $6 billion to oil traders, significantly affecting its capacity to meet local demand and causing sustained fuel shortages since July.
Following the removal of subsidies last year, fuel prices have risen by 45% from the official price of 617 naira ($0.39). Despite being Africa’s largest oil producer, Nigeria relies almost entirely on fuel imports due to the prolonged neglect of its national refineries.
