The Dangote refinery, with a production capacity of 650,000 barrels per day, is currently in the test run phase for producing Premium Motor Spirit (PMS), also known as petrol.
Full-scale operations are anticipated by mid-September. Although the refinery, developed by Aliko Dangote at a cost of $20 billion, has primarily produced diesel and other fuels so far, petrol production is expected to ramp up soon.
Initially, the refinery aimed to begin petrol deliveries by May, later adjusting the timeline to July. However, further delays have been suggested, though the latest reports indicate that petrol distribution should commence next month.
This development is set to significantly impact the fuel trade between Europe and Africa by reducing Nigeria’s reliance on imported refined products.
A government committee tasked with facilitating the sale of crude oil to local refineries has reached an agreement with Dangote Refinery to start petrol distribution in September.
Additionally, the sale of crude oil to the Dangote Refinery and other domestic refineries is scheduled to begin on October 1, 2024.
The Federal Government’s plans were further confirmed by the Minister of Finance, Wale Edun, and the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, during a recent meeting, where they reiterated the refinery’s readiness to deliver its first batch of petrol in line with existing agreements.