Despite promises that it would begin petrol production between August 10 and 12, 2024, the Dangote Petroleum Refinery may postpone the roll out of Premium Motor Spirit (PMS).
In July, Alhaji Aliko Dangote, CEO of Dangote Group, had projected that the refinery would begin supplying products on August 12.
Insiders revealed on Sunday that while everything is set for the much-anticipated production of PMS, it is expected to commence by the end of August.
One senior official, speaking anonymously, confirmed that the refinery is fully prepared to start petrol production this month but emphasised the necessity of an uninterrupted crude supply to maintain operations.
There are also indications that the ongoing crude supply crisis may hinder the refinery’s ability to start petrol production today, even as PMS marketers eagerly await the product’s release this week.
Pending the arrival of 29 million barrels of crude oil from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC),
efforts are reportedly in full swing at the refinery to roll out petrol this August.
Sources close to the situation confirmed that while the refinery is ready to release petrol this month, the low crude supply may impact the process.
“The sale of PMS will begin this August, though the low supply of crude oil has been a consistent challenge. However, based on current information, we are 100% ready to supply PMS,” said one source.
Another insider confirmed that the refinery is still waiting for the promised 29 million barrels of crude oil from the NUPRC. “The NUPRC has yet to deliver the 29 million barrels allocated to Dangote. Although they claimed on Friday that the crude was supplied, it hasn’t reached the refinery. Dangote needs 15 cargoes for September, but only six have been supplied, leaving him to import the rest. Even though the President said local refineries should buy in naira, if it’s at international rates, what difference does it make?” she asked.
While Dangote is expected to begin petrol supply in August, the product might not be sold locally due to price disparities. Experts suggest that the current price offered by the Nigerian National Petroleum Company Limited is not competitive for any trader.
“For Dangote to sell in Nigeria, the rate must be competitive. With Dangote sourcing crude at international rates, it’s unreasonable to expect him to sell below cost price. It might be more profitable to sell abroad than to incur losses in Nigeria. There’s a lot of politics in oil and gas, which is severely impacting Nigeria, as former President Olusegun Obasanjo pointed out. Those benefiting from fuel importation are obstructing Dangote,” said one expert.
