Dangote Refinery to Begin Petrol Distribution, Aims to Boost Supply and Reduce Prices

Sunday marks a historic moment in Nigeria's journey toward self-reliance in fuel production as the Dangote Refinery prepares to introduce its locally refined Premium Motor Spirit (PMS) to the market.

According to a statement released by Olufemi Soneye, spokesperson for the Nigerian National Petroleum Company Limited (NNPCL), over 300 trucks loaded with petrol from the $20 billion Dangote Refinery will begin distribution on Sunday. The refinery, located in Lagos, has a capacity of 650,000 barrels per day, which is expected to greatly enhance fuel availability in the country.

Aliko Dangote, President of the Dangote Group, formally announced the commencement of petrol production from the refinery on September 3, 2024. The Federal Government, through Finance Minister Wale Edun, confirmed on Friday that NNPCL would begin loading petrol from the refinery, with arrangements to supply about 385,000 barrels of crude oil per day starting October 1, 2024.

Speaking to DAILY POST, Abubakar Maigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), described the refinery's launch as a "welcome development," noting that it could reduce Nigeria's dependence on foreign fuel imports and strengthen the Naira. Maigandi also expressed optimism that the introduction of locally refined petrol would lead to a reduction in fuel prices, although the pricing structure from the Dangote Refinery has yet to be revealed.

Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), echoed these sentiments, stating that marketers are eager to collaborate with the Dangote Refinery and are hopeful for more affordable petrol prices. However, he noted the need for transparent communication regarding the pricing of the refinery's petrol.

Gillis-Harry stated, “We are proud that this product is made in Nigeria. We are waiting to see petrol from the Dangote Refinery at competitive prices, which would benefit all Nigerians. However, clarity on the pricing structure is crucial.”

There has been speculation that Dangote Refinery's petrol may be priced at around N766 per litre, but official confirmation is still pending.

As the first trucks leave the Dangote Refinery on Sunday, the Nigerian market eagerly awaits the potential benefits of locally produced petrol, including improved availability and possibly lower prices.