The Dangote Petroleum Refinery is set to begin selling Premium Motor Spirit (PMS), also known as petrol, after a successful test run. The refinery, with a capacity of 650,000 barrels, has been working out modalities with the government for the distribution of the product. Only the Nigerian National Petroleum Company Limited (NNPCL) will be authorized to sell the Dangote fuel initially.
This development comes after the refinery faced challenges, including crude oil shortages and a dispute with the Nigerian Midstream and Downstream Regulatory Authority over alleged substandard diesel production. The Federal Government’s intervention, including supplying crude oil to the refinery in local currency, has helped resolve these issues.
The Dangote Group had previously accused international oil companies of not selling crude oil to local refiners, instead prioritizing Asian countries. However, the government’s efforts have led to a breakthrough, with the refinery set to produce petrol for the local market.
Nigerians are hopeful that the entry of Dangote fuel into the market will lead to a reduction in pump prices. The refinery’s production is expected to increase the availability of petrol in the country, potentially ending the current scarcity and high prices.
The Dangote Petroleum Refinery’s launch is a significant milestone in Nigeria’s efforts to boost local refining capacity and reduce reliance on imported fuel. The government’s support for the project demonstrates its commitment to promoting industrialization and economic growth.
