DANGOTE PETROL: MARKETERS WAIT AS DELIVERY DATE EXTENDED AGAIN
1. Delayed Petrol Rollout: The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, might not start producing petrol on the previously scheduled date of August 12, 2024. This follows earlier projections from President Aliko Dangote that production would begin between August 10 and 12.
2. Current Status:
- Readiness: Despite the delay, sources close to the refinery state that the facility is prepared to begin petrol production within August. However, the ongoing crude supply issues could impact this timeline.
- Crude Supply Crisis: The refinery is experiencing a shortage of crude oil, crucial for its operations. It is awaiting 29 million barrels of crude from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), but there are claims that the supply has not been received as promised.
3. Challenges:
- Crude Oil Supply: There is an ongoing dispute between Dangote and NUPRC over the allocation and delivery of crude oil. NUPRC claims to have facilitated the supply of 29 million barrels to Dangote, while Dangote asserts that it has not received these shipments.
- Price Competitiveness: There are concerns that the local price of petrol might not be competitive compared to international rates, potentially affecting the refinery’s ability to sell petrol locally.
4. Operational Impact:
- Crude Oil Allocation: The refinery needs a consistent supply of crude to maintain operations without interruption. The current shortage could delay or impact production and distribution plans.
- Market Impact: If the refinery cannot begin production as planned, it could delay the anticipated reduction in fuel imports and impact market dynamics for petrol in Nigeria.
5. Government and Industry Reactions:
- NUPRC's Position: The NUPRC has disputed Dangote's claims, asserting that it has fulfilled its obligations and facilitated the crude oil supply.
- Dangote's Stance: Dangote emphasizes the need for direct local crude supply to avoid reliance on international traders and to ensure competitive pricing for local markets.
6. Broader Implications:
- Local Market: There is uncertainty about when petrol will be available locally and at what price. Marketers are currently relying on imports for petrol while sourcing diesel and aviation fuel from Dangote.
- Economic Impact: The situation underscores broader issues in Nigeria’s oil sector, including challenges with crude oil supply and pricing dynamics.
1. Delayed Petrol Rollout: The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, might not start producing petrol on the previously scheduled date of August 12, 2024. This follows earlier projections from President Aliko Dangote that production would begin between August 10 and 12.
2. Current Status:
- Readiness: Despite the delay, sources close to the refinery state that the facility is prepared to begin petrol production within August. However, the ongoing crude supply issues could impact this timeline.
- Crude Supply Crisis: The refinery is experiencing a shortage of crude oil, crucial for its operations. It is awaiting 29 million barrels of crude from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), but there are claims that the supply has not been received as promised.
3. Challenges:
- Crude Oil Supply: There is an ongoing dispute between Dangote and NUPRC over the allocation and delivery of crude oil. NUPRC claims to have facilitated the supply of 29 million barrels to Dangote, while Dangote asserts that it has not received these shipments.
- Price Competitiveness: There are concerns that the local price of petrol might not be competitive compared to international rates, potentially affecting the refinery’s ability to sell petrol locally.
4. Operational Impact:
- Crude Oil Allocation: The refinery needs a consistent supply of crude to maintain operations without interruption. The current shortage could delay or impact production and distribution plans.
- Market Impact: If the refinery cannot begin production as planned, it could delay the anticipated reduction in fuel imports and impact market dynamics for petrol in Nigeria.
5. Government and Industry Reactions:
- NUPRC's Position: The NUPRC has disputed Dangote's claims, asserting that it has fulfilled its obligations and facilitated the crude oil supply.
- Dangote's Stance: Dangote emphasizes the need for direct local crude supply to avoid reliance on international traders and to ensure competitive pricing for local markets.
6. Broader Implications:
- Local Market: There is uncertainty about when petrol will be available locally and at what price. Marketers are currently relying on imports for petrol while sourcing diesel and aviation fuel from Dangote.
- Economic Impact: The situation underscores broader issues in Nigeria’s oil sector, including challenges with crude oil supply and pricing dynamics.