The long-awaited Dangote fuel is set to hit the market soon. The 650,000-barrel-per-day refinery is expected to start selling Premium Motor Spirit (PMS), commonly known as petrol, to Nigerians in mid-September, following several missed deadlines.
According to Punch newspaper, citing an anonymous source, the Dangote refinery is nearing the commencement of petrol sales.
The source confirmed that the Dangote Group is finalizing arrangements for the distribution of the product.
The Punch report also indicated that the Federal Government is overseeing the sale and distribution of Dangote fuel. Only the Nigerian National Petroleum Company Limited (NNPC Ltd) is authorized to handle the distribution of the refinery’s output.
Initially, Dangote had anticipated starting petrol supplies from the refinery in May. However, this target was not met, and subsequent deadlines in June, July, and August were also missed due to disruptions in crude oil supplies.
The delays have been attributed to several issues, including a dispute between Dangote Group and the Nigerian government.
Notably, there was a halt in Nigeria’s crude oil sales to the refinery until the Federal Executive Council (FEC) approved a proposal allowing NNPC Ltd to sell crude oil in Nigeria’s local currency to Dangote and other refineries.
Further complicating matters, Dangote accused oil majors of obstructing access to locally produced petroleum by either pricing it above market rates or claiming it was unavailable.
As a result, the refinery had to source crude oil from international markets, including Brazil and the US, leading to costly imports.
Additionally, Aliko Dangote claimed that certain Nigerian employees of NNPC, along with oil dealers and terminals, had established a blending factory in Malta, which adversely affected the refinery’s ability to produce petrol.
