The wait for petrol production from the Dangote Petroleum Refinery might be longer than expected. Despite promises to start producing Premium Motor Spirit (PMS) between August 10-12, insiders say the rollout might be postponed due to crude supply issues.
In July, Alhaji Aliko Dangote, CEO of Dangote Group, projected that the refinery would begin supplying products on August 12. However, sources close to the situation revealed that while everything is set for production, an uninterrupted crude supply is needed to maintain operations.
The refinery is still waiting for 29 million barrels of crude oil from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Efforts are in full swing to roll out petrol this August, but the low crude supply might impact the process.
“The sale of PMS will begin this August, though the low supply of crude oil has been a consistent challenge,” said one source. “However, based on current information, we are 100% ready to supply PMS.”
Another insider confirmed that the refinery is still waiting for the promised crude oil from the NUPRC. “The NUPRC has yet to deliver the 29 million barrels allocated to Dangote. Although they claimed on Friday that the crude was supplied, it hasn’t reached the refinery.”
Experts suggest that even if production starts, the product might not be sold locally due to price disparities. “For Dangote to sell in Nigeria, the rate must be competitive. With Dangote sourcing crude at international rates, it’s unreasonable to expect him to sell below cost price.”
Stay tuned for updates on the refinery’s production and supply plans!
