The Dangote Refinery has started processing premium motor spirit (PMS), commonly known as petrol, as the Nigerian National Petroleum Company (NNPC) Limited is set to become the initial exclusive buyer of its products.
According to a report by Reuters on Monday, 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.
The vice president at Dangote Industries Limited, Devakumar Edwin, also told the publication 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.
He, however, did not mention when the product will hit the market.
NNPC Limited on Sunday acknowledged its debt to international oil traders, has significantly contributed to the shortage of fuel supply to local marketers, hence, the nationwide scarcity of the product.
The announcement that the national oil company will become the exclusive buyer of petrol from the Dangote refinery could provide much-needed relief to NNPC, which is currently grappling with its international obligations to oil traders.
If the Dangote refinery exclusively supplies NNPC, it would significantly lower importation and logistics costs, allowing local marketers to purchase petrol from NNPC at a reduced price.
This arrangement could also address the persistent fuel scarcity that has plagued the country for over a month, with little progress made by the national oil company.
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