Dangote refinery petrol production delayed again

The Dangote Petroleum Refinery may face delays in rolling out petrol, as planned, due to ongoing crude oil supply challenges.

Despite earlier projections by the President of the Dangote Group, Alhaji Aliko Dangote, that the refinery would begin production between August 10 and 12, 2024, sources close to the development now indicate that petrol production might not start until the end of August.

Key officials confirmed that the refinery is ready to commence operations but emphasized that a consistent crude supply is crucial for uninterrupted production.

Dangote refinery petrol production is still awaiting the delivery of 29 million barrels of crude oil, which was promised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Only six out of the required 15 cargoes for September have been supplied, raising concerns about potential delays.

The refinery’s challenges are further compounded by the risk of uncompetitive pricing, which could prevent the product from being sold locally. Officials also noted that the refinery’s output may be affected by the shortage of crude oil, despite efforts to begin production this month.

This potential delay follows previous postponements, adding to the growing anxiety among petroleum marketers and the general public who are anticipating a reduction in fuel imports. The Dangote Group has been embroiled in a dispute with the NUPRC over the supply of crude oil, with both parties accusing each other of failing to meet obligations.

As the refinery navigates these issues, the question remains whether it can meet its August deadline, a development that is critical for Nigeria’s energy sector.