Next month, the Dangote Refinery, a new colossal refining facility in Nigeria owned privately, is set to commence the distribution of Premium Motor Spirit (PMS), commonly referred to as petrol.
Bloomberg reports that the firm’s Executive Director, Mr. Devakumar Edwin, has confirmed the upcoming start of petrol deliveries to the Nigerian market.
This development is expected to significantly reduce Nigeria’s reliance on expensive imported petroleum.
Despite being Africa’s largest crude oil producer and most populous nation, Nigeria imports nearly all its fuel due to insufficient refining capabilities.
The refinery, a $19.5 billion project with a capacity of 650,000 barrels per day, located just outside Lagos and established by Mr. Aliko Dangote, Africa’s wealthiest individual, has also begun distributing its first products, diesel and aviation fuel, this Tuesday.
Mr. Edwin announced the commencement of diesel and jet fuel distribution in the local market, noting the availability of substantial quantities for evacuation via sea and road.
He mentioned that vessels are queued to load diesel and aviation jet fuel, with each ship carrying at least 26 million litres, aiming for 37 million litres to streamline operations.
Mr. Abubakar Maigandi, the president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that the diesel would be sold at a fixed price of N1,225 per litre as per a bulk purchase agreement, before marketers add their profit margin.
The Depots and Petroleum Products Marketers Association of Nigeria (DPPMAN) is also in the process of securing letters of credit to purchase petroleum products from Dangote, as revealed by Mr. Femi Adewole, the association’s executive secretary. He indicated that product lifting would commence following the approval and disbursement of these letters.
Earlier in January, the Dangote Petroleum Refinery initiated the production of diesel and aviation fuel. The company disclosed that it had received six million barrels of crude oil at its two Single Point Moorings (SPMs) situated 25 kilometres offshore.
The first delivery of crude, consisting of Agbami crude grade, was made by Shell International Trading and Shipping Company Limited (STASCO), a major trading entity in Nigeria and worldwide, dealing with over 8 million barrels of crude oil daily.
The initial delivery occurred on December 12, 2023, followed by the sixth shipment on January 8.
