Dangote Refinery has commenced the production of premium motor spirit or petrol, positioning the Nigerian National Petroleum Company Limited as its first exclusive buyer.
According to a recent Reuters report, the refinery, which boasts a capacity of 650,000 barrels per day, is in the final stages of testing and will begin rolling out petrol in the coming weeks.
The vice president at Dangote Industries Limited, Devakumar Edwin, also mentioned that the national oil company is prepared to purchase its products exclusively to meet local demands.
“We are testing the product (gasoline) and subsequently it will start flowing into the product tanks.
“If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel,” Edwin said.
The report confirmed that the refinery is ready to roll out petrol in the coming weeks as testing has begun in the 650,000 barrel per day petrochemical plant.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd. Remains dedicated to its role as the supplier of last resort, ensuring national energy security. We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” NNPC said.
He, however, did not mention when the product will hit the market.
It was earlier reported that NNPC has recently admitted to owing international oil traders approximately $6 billion in subsidy obligations, a debt that has significantly disrupted the fuel supply to local marketers.
The shortage stems from these traders halting petrol imports to NNPC due to the unpaid obligations.
While NNPC initially denied the claims, the company later confirmed that its outstanding debts have played a critical role in the persistent fuel scarcity nationwide.
Recall NNPC Limited recently acknowledged its debt to international oil traders, which has played a significant role in the fuel supply shortage affecting local marketers.
It was earlier reported that NNPC owes these traders around $6 billion in subsidy obligations, prompting them to stop supplying imported petrol to the company.
This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply.
The recent announcement that NNPC will become the exclusive buyer of petrol from the Dangote Refinery could be a game-changer for the national oil company, which is struggling with substantial international debts.
By sourcing petrol exclusively from the Dangote Refinery, NNPC could significantly reduce importation and logistics costs, enabling local marketers to purchase fuel at lower prices.
This arrangement is expected to ease the ongoing fuel scarcity that has gripped the nation for over a month, with little progress from NNPC so far.
With the capacity to meet both domestic demand and export to other African countries, the Dangote Refinery is set to play a vital role in stabilizing Nigeria’s fuel supply.
The Federal Executive Council has recently approved the sale of crude oil to the Dangote refinery in local currency, on the condition that the refinery will sell processed petrol to the country in the same currency.
NNPCL to be sole buyer of Dangote refinery oil- Report
