PETROL WILL BE EXPORTED IF MARKETERS BOYCOTT PRODUCT — DANGOTE REFINERY

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Olori Uwem

Member
Mar 18, 2024
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PETROL WILL BE EXPORTED IF MARKETERS BOYCOTT PRODUCT — DANGOTE REFINERY

Summary:
The article discusses the challenges faced by the Dangote Petroleum Refinery in Nigeria, including difficulties in selling its locally produced Premium Motor Spirit (PMS or petrol) due to a lack of patronage from the Nigerian National Petroleum Company Limited (NNPC) and other petroleum dealers. The refinery has resorted to exporting its products due to these challenges.

Key Points:
1. Petrol Production:
- The refinery has begun producing PMS as of Sunday, adding to its production of aviation fuel, kerosene, and diesel.

2. Export vs. Local Sales:
- Despite the commencement of PMS production, the refinery faces obstacles in selling locally due to a perceived blockade by local traders.
- The refinery may export petrol if the NNPC and local traders do not purchase it.

3. Challenges with Crude Supply:
- The refinery struggles to obtain enough crude oil locally, forcing it to import crude from countries like the US and Brazil.
- Four new crude tanks are being constructed to store imported crude due to inadequate local supply.

4. Local Patronage:
- The refinery’s gantry, capable of loading 2,900 tankers daily, is underutilized due to low local patronage.
- Traders are accused of avoiding the purchase of locally produced products to protect their interests.

5. Fuel Quality:
- The refinery boasts of high-quality products that meet Euro 5 grade standards, making them exportable worldwide.

6. Environmental and Cost Efficiency:
- The refinery operates with a focus on environmental friendliness and energy efficiency.

7. Accusations of Monopoly:
- The article addresses accusations against Aliko Dangote, President of the Dangote Group, of being a monopolist, arguing that his investments benefit Nigeria’s economy.

8. Future of PMS in Nigeria:
- Discussions are ongoing between the Federal Government and the Dangote Group regarding the distribution of Dangote petrol, with NNPC potentially being the sole authorized seller.

9. Ongoing Issues:
- The refinery continues to face challenges with crude oil supply and local sales, amidst disputes with regulatory bodies and international oil companies.