Dangote refinery to supply petrol locally in May

Dangote Refinery, the largest oil processing facility in Africa, is set to revolutionize Nigeria’s petroleum industry by supplying Premium Motor Spirit (PMS), commonly known as petrol, to domestic marketers starting in May 2024.

This development follows the refinery’s recent commencement of diesel and aviation jet fuel distribution to local markets.

Sources familiar with the matter indicate that the refinery, operational since January, has already made significant strides in exportation, with shipments of low-sulfur fuel oil and naphtha recorded last month.

Operating initially at 350,000 barrels per day, the facility aims to gradually increase production to its maximum capacity.

Industry leaders, such as Abubakar Maigandi of the Independent Petroleum Marketers Association of Nigeria, confirm that diesel distribution from the refinery has begun.

Marketers have secured supplies and finalized payment details, with diesel priced at 1,225 naira per litre ($0.96) after collective purchase arrangements.

Devakumar Edwin, an executive at Dangote Group, confirms the commencement of local distribution, highlighting substantial quantities available for evacuation by sea and road.

Ships are reportedly lining up for loading, with capacities ranging from 26 million to 37 million litres, ensuring smooth operations.

The Dangote refinery, situated near Lagos’s commercial hub, represents a monumental investment of $20 billion by Aliko Dangote, Africa’s wealthiest individual.

With a processing potential of 650,000 barrels per day, it aims to address Nigeria’s chronic dependence on imported petroleum products, despite being a leading oil producer in Africa.

Upon reaching full operational capacity, the Dangote refinery is expected to significantly reduce Nigeria’s reliance on imports, marking a crucial milestone in the nation’s quest for energy self-sufficiency.