The Dangote Petroleum Refinery is poised to begin the sale of Premium Motor Spirit (PMS), commonly known as petrol. This announcement follows the recent test-run of the refinery’s 650,000 barrels-per-day capacity.

Industry insiders, speaking on the condition of anonymity, confirmed that the product would soon be available on the market. The sources disclosed that the Dangote Group and the Federal Government are currently finalizing the logistics for distribution.

A government official hinted that, initially, only the Nigerian National Petroleum Company Limited (NNPCL) would be authorized to distribute the petrol produced by the Dangote Refinery.

It is worth recalling that the refinery’s petrol output was originally expected to be available in June, but production was delayed due to a crude oil shortage and a dispute with the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA). The regulatory body had accused the refinery of producing substandard diesel, further complicating the situation.

The Federal Government’s intervention, mandating the supply of crude oil to the refinery in local currency, appears to have resolved some of these challenges.

The Dangote Group, along with other local refineries, has consistently criticized international oil companies (IOCs) for not selling crude oil to domestic refiners. Recently, the government announced that a crude oil supply deal would commence in October.

The Dangote Group has also claimed that IOCs are insisting on selling crude to their refinery through foreign agents, causing local crude prices to increase due to markups of $2 to $4 per barrel above the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) official price. Additionally, it was alleged that these foreign oil producers are prioritizing sales to Asian countries over Nigerian refineries.

There was earlier report of a  dispute between the Dangote Refinery and the NUPRC concerning the alleged supply of 29 million barrels of crude oil. While the NUPRC claimed it facilitated this supply from January to June 2024, the Dangote Group refuted the claim, stating that it had only received one crude cargo from a domestic producer, with the rest being purchased from international traders.

Anthony Chiejina, the spokesperson for the Dangote Group, clarified that they have yet to receive the 29 million barrels of crude oil that the NUPRC mentioned. He emphasized that the refinery prefers to purchase crude directly from Nigerian producers rather than through international intermediaries.

As the refinery prepares to launch its petrol sales, Nigerians are hopeful that this move will lead to a reduction in the pump price of PMS.