The Dangote Refinery, a massive facility with a capacity of 650,000 barrels per day, is gearing up to commence full-scale production of Premium Motor Spirit (PMS), commonly known as petrol, by mid-September. Currently, the refinery is conducting test runs for petrol production.
According to a report by industry analyst IIR Energy, the $20 billion refinery, developed by Aliko Dangote, has primarily focused on producing diesel and other distillate fuels up to this point. Initially, the refinery had targeted the start of petrol deliveries in May, with a revised goal of beginning in July, but those timelines have since been pushed back.
IIR Energy noted in a report to clients that further delays are possible as the refinery approaches full operational capacity.
Once fully operational, the Dangote Refinery is expected to significantly alter the fuel trade dynamics between Europe and Africa, reducing Nigeria’s reliance on imported refined products.
Earlier this month, a Federal Government committee tasked with facilitating the sale of crude oil to local refineries in naira reached an agreement with Dangote Petroleum Refinery, setting September 2024 as the start date for petrol distribution.
The Federal Government also announced that the sale of crude oil to Dangote Refinery and other domestic refineries is slated to begin on October 1, 2024. This information was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja.
During the same meeting, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, along with the Chairman of the Technical Sub-Committee, confirmed that the first delivery of PMS from Dangote Refinery is expected next month under the current agreements.
