The Dangote Petroleum Refinery is preparing to launch the sale of Premium Motor Spirit (PMS), commonly known as petrol, after successfully completing a test run of the product. The 650,000-barrels-per-day refinery, located in Lagos, is poised to introduce its petrol to the Nigerian market soon.
Industry sources have confirmed that the Dangote Group, in collaboration with the Federal Government, is finalizing the distribution and sale modalities. The sources indicated that, initially, only the Nigerian National Petroleum Company Limited (NNPCL) will be authorized to distribute the Dangote-produced petrol.
The refinery, which was initially expected to begin PMS sales in June, faced delays due to a crude oil shortage and a dispute with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA) over the alleged production of substandard diesel. The situation has since been addressed, with the Federal Government intervening to ensure a steady crude supply to the refinery in local currency.
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In addition to these challenges, Dangote and other local refiners have voiced concerns over the reluctance of international oil companies (IOCs) to sell crude to domestic refineries, instead favoring foreign agents and markets in Asia. The Dangote Group has called for direct sales of Nigerian crude to local refiners to stabilize the local market and reduce dependence on international middlemen.
Despite these challenges, the Dangote Refinery is now ready to bring its PMS to the market, with Nigerians hopeful that the introduction of locally refined petrol will lead to a reduction in pump prices. The refinery's entry into the market marks a significant step toward increasing Nigeria's domestic refining capacity and reducing reliance on imported fuel.
