According to sources, the Dangote refinery will start selling Petrol, also known as Premium Motor Spirit (PMS), to all domestic consumers next month, May 2024.
The Dangote refinery, which happens to be the largest refinery in Africa, has started circulating diesel and aviation jet fuel to local marketers at a rate of 1,225/ltr. According to reports from Nairametrics, the price of both products might be reduced in the coming month.
The significance of this new development is that it will save Nigeria from exporting petroleum products overseas as the new mega-refinery will start the supply of PMS in the domestic market in May 2024
After shipping in over 65,000 metric tons of sulphur straight run of fuel and a total of 60,000 tons of naphtha, the refinery, which started it operation in January, made her first export in March 2024, last month
With the refinery planning to increase its maximum capacity, the facility is currently operating at a processing rate of 350,000 barrels of Oil per day.
How it all started.
In case you missed it all, it was reported that on Tuesday, 2nd April,2024. The Nigeria market has already started receiving supplies of petroleum products from Dangote oil refinery. The products which includes, diesel and aviation jet fuel
Reports getting to Reuters from Abubakar Maigandi, the leader of the IPMAN, Independent Petroleum Marketers Association of Nigeria, said that the diesel cost was placed at 1,225 naira per litre ($0.96) by domestic marketers who had finalised a collective purchase arrangement after adding their mark-up.
Maigandi,, the head of the IPMAN, said that members control about 150,000 petroleum retail stations in different parts of Nigeria.
The local distribution of diesel and jet fuel by the company was affirmed by Devakumar Edwin who is an executive member at the Dangote Group.
In Devakumar Edwin’s words, he said,
“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up to load diesel and aviation jet fuel.
“Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations,”
Reports coming from Abubakar Maigandi, the head of the industry organisation, state that all marketers have started making their payments in naira to move their purchases from the refinery to their various businesses.
He quotes,
“We are still finalising the details of the volumes that we are going to take from Dangote as an association and we also haven’t finalised on the price,” he said.
Did you know?
The Dangote refinery, after several postponements will soon be completed. Aliko Dangote has invested over $20 million into the project which is situated in Lagos commercial centre in a peninsula. The Dangote refinery happens to be the largest refinery in Africa.
The refinery has yet to receive full operational status but will either this year or next. It has the capacity to process over 650,000 barrels of Petrol per day and has been recognized as one of the largest refineries in Africa and Europe.
It is pretty ironic that despite Nigeria being one of the most populous countries in Africa and also its highest oil producer, it imports almost all its fuel.
However, with the rise of The Dangote refinery, it is expected that the refinery will help reduce Nigeria’s dependence on imported petroleum products from other countries.
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