DANGOTE PMS READY FOR ROLLOUT
1. Dangote Petroleum Refinery and PMS Rollout:
- The Dangote Petroleum Refinery is preparing to launch the sale of Premium Motor Spirit (PMS), commonly known as petrol, into the market.
- This rollout comes shortly after the refinery conducted a test run of the product, confirming its readiness for distribution.
2. Collaboration with the Nigerian Government:
- Discussions and arrangements between the Dangote Group and the Federal Government are ongoing to finalize the modalities for distributing the fuel.
- Currently, only the Nigerian National Petroleum Company Limited (NNPCL) is authorized to sell the fuel produced by the Dangote Refinery.
3. Challenges and Delays:
- The release of petrol from the Dangote Refinery was initially expected in June 2024, but it was delayed due to a shortage of crude oil.
- The refinery also faced issues with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which accused it of producing substandard diesel, leading to further delays.
4. Crude Oil Supply Issues:
- The Federal Government intervened, mandating that crude oil should be supplied to the refinery in local currency, which appears to have resolved the supply issues.
- There has been tension between local refineries and international oil companies (IOCs), with the latter being accused of not selling crude to local refiners. The Dangote Group has particularly highlighted challenges in securing crude oil from these IOCs.
5. Recent Developments:
- The Federal Government announced that a new crude oil supply deal would commence in October, which is expected to stabilize the refinery's operations.
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) claimed to have facilitated the supply of 29 million barrels of crude to the refinery between January and June 2024. However, the Dangote Group denied receiving this amount, stating they had only purchased a single crude cargo from a domestic producer and other supplies from international traders.
6. Industry and Public Expectations:
- The general expectation is that the introduction of Dangote's petrol will lead to a reduction in the pump price of PMS, offering some relief to consumers in Nigeria.
1. Dangote Petroleum Refinery and PMS Rollout:
- The Dangote Petroleum Refinery is preparing to launch the sale of Premium Motor Spirit (PMS), commonly known as petrol, into the market.
- This rollout comes shortly after the refinery conducted a test run of the product, confirming its readiness for distribution.
2. Collaboration with the Nigerian Government:
- Discussions and arrangements between the Dangote Group and the Federal Government are ongoing to finalize the modalities for distributing the fuel.
- Currently, only the Nigerian National Petroleum Company Limited (NNPCL) is authorized to sell the fuel produced by the Dangote Refinery.
3. Challenges and Delays:
- The release of petrol from the Dangote Refinery was initially expected in June 2024, but it was delayed due to a shortage of crude oil.
- The refinery also faced issues with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which accused it of producing substandard diesel, leading to further delays.
4. Crude Oil Supply Issues:
- The Federal Government intervened, mandating that crude oil should be supplied to the refinery in local currency, which appears to have resolved the supply issues.
- There has been tension between local refineries and international oil companies (IOCs), with the latter being accused of not selling crude to local refiners. The Dangote Group has particularly highlighted challenges in securing crude oil from these IOCs.
5. Recent Developments:
- The Federal Government announced that a new crude oil supply deal would commence in October, which is expected to stabilize the refinery's operations.
- The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) claimed to have facilitated the supply of 29 million barrels of crude to the refinery between January and June 2024. However, the Dangote Group denied receiving this amount, stating they had only purchased a single crude cargo from a domestic producer and other supplies from international traders.
6. Industry and Public Expectations:
- The general expectation is that the introduction of Dangote's petrol will lead to a reduction in the pump price of PMS, offering some relief to consumers in Nigeria.