The Dangote Petroleum Refinery has indicated that it may be forced to export its Premium Motor Spirit (PMS), commonly known as petrol, if the Nigerian National Petroleum Company Limited (NNPCL) and other local petroleum dealers do not patronize its products. This statement was made by Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, during an appearance on the Brekete Family live show.
Edwin confirmed that the refinery has started producing petrol, marking the final stage in its production lineup. However, he noted that local oil traders have been importing diesel and aviation fuel, effectively blocking the domestic sale of Dangote’s fuel.
“We’ve been exporting aviation fuel, producing kerosene, and producing diesel. Yesterday, we started the production of PMS. So, that was the last stage. The only thing left now is petrochemicals,” Edwin stated.
Despite the refinery’s readiness to supply PMS domestically, Edwin warned that if NNPCL and local traders continue to refrain from purchasing the product, Dangote would have no choice but to export it, as they have done with other petroleum products.
He expressed frustration over the challenges the refinery has faced, particularly with securing a consistent supply of crude oil. Edwin revealed that the refinery has resorted to importing crude from countries like the U.S. and Brazil due to insufficient local supply, a situation he described as contrary to the original philosophy of the business.
Edwin also highlighted the refinery's capabilities, noting that it has the best laboratory in the world and produces Euro 5 grade fuel, which meets the highest international standards. He emphasized that despite these achievements, local patronage remains low, forcing the refinery to focus on exporting its products.
Addressing accusations that Aliko Dangote, the President of Dangote Group, is a monopolist, Edwin defended the company’s operations, stating that Dangote’s investments are aimed at creating wealth and job opportunities within Nigeria, rather than personal enrichment.
Industry sources have indicated that Dangote’s PMS could soon enter the Nigerian market, with ongoing discussions between the Dangote Group and the Federal Government to finalize the distribution arrangements. However, the NNPCL is expected to be the sole authorized distributor of Dangote’s fuel in the country for now.
This development comes amid ongoing tensions between the Dangote Refinery and the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA), as well as challenges in securing adequate crude oil supplies from international oil companies.
