Dangote petrol to hit the market soon as crude oil supply issues resolved

The development comes after the refinery, which has a capacity of 650,000 barrels per day, successfully completed a test run of its gasoline production. Industry insiders have confirmed that the product will be available soon.

A government source, who requested anonymity, told Punch that the federal government and the Dangote Group are currently working out the details surrounding the distribution and sale of the petrol.

The move follows a series of challenges that delayed the refinery’s initial plans to start operations in June. A major hurdle was a shortage of crude oil, further complicated by a dispute with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA).

The regulator accused the refinery of producing inferior diesel. However, there appears to have been progress following the federal government’s directive to supply crude oil to the refinery in local currency.

The Dangote Group has long expressed frustration over the refusal of international oil companies (IOCs) to sell crude oil to local refineries, instead selling through foreign agents. The refiner claims that this practice has led to inflated local crude oil prices, with IOCs reportedly prioritizing Asian markets over Nigerian refineries.

Nigeria’s Upstream Petroleum Regulatory Commission (NUPRC) recently claimed it had facilitated the delivery of over 29 million barrels of crude oil to the Dangote refinery between January and June 2024.

However, the Dangote Group has refuted this claim, stating that only one cargo of crude oil was delivered domestically while the rest had to be purchased from international traders.

Anthony Chiejina, the spokesperson for the Dangote Group, stressed: “We appreciate the allocation but we are yet to receive the bulk of these cargoes. We believe that Nigerian refineries should have direct access to locally produced crude oil instead of depending on international intermediaries.”

As the rollout of Dangote petrol approaches, Nigerians are hoping that the new supply will bring down the pump price of PMS. However, ongoing disputes over crude supply raise questions about the long-term stability of this new venture.