Dangote Group Introduces First Sample of Petrol from New Refinery

The President of the Dangote Group, Aliko Dangote, recently showcased the first sample of Premium Motor Spirit, widely known as petrol, during a broadcast from his refinery situated in the Ibeju-Lekki area of Lagos State.

This refinery, boasting a production capacity of 650,000 barrels per day, has been undergoing a test run of its product.

During the presentation, Dangote expressed appreciation to the Nigerian populace and the administration of President Bola Tinubu for fostering an environment conducive to growth, development, and prosperity. He particularly thanked the President for initiating the idea of exchanging crude oil for Naira, highlighting that this move would bolster the stability of the national currency.

He further articulated that with the refinery’s operations in full swing, there will be improved visibility of Nigeria’s actual fuel consumption. This advancement will enable the tracking of every truck and shipload of fuel.

Dangote asserted that the refinery’s production would not only satisfy the requirements of Nigerians but also cater to the needs of neighboring sub-Saharan African countries.

According to reports from The PUNCH, Dangote and other local refiners have continuously voiced concerns over international oil companies’ reluctance to sell crude to local refineries. It was noted that the Federal Government had announced that the new crude oil supply agreement would commence in October.

The Dangote Group management indicated that international oil companies prefer to sell crude oil to their refinery through foreign intermediaries, which they argue has driven local crude prices upwards. These trading arms reportedly offer crude at prices ranging from $2 to $4 per barrel over the official price reported by the NUPRC, the Nigerian Upstream Petroleum Regulatory Commission.

Additionally, the group alleged that foreign producers seem to prioritize selling their extracted crude to Asian markets instead of local refineries.

A report by The PUNCH also highlighted a dispute between the Dangote refinery and the NUPRC regarding the alleged supply of 29 million barrels of crude oil to the refinery. The Dangote Group claimed that the NUPRC failed to effectively enforce the Domestic Crude Supply Obligations regulations, resulting in insufficient local crude supply.

In response, the NUPRC asserted that it facilitated the supplying of over 29 million barrels of crude oil to Dangote from January to June 2024. They emphasized their commitment to ensuring domestic crude oil supply to Dangote refinery and other local refineries through a monthly production curtailment platform.

However, the Dangote Group quickly countered, denying the receipt of 29 million barrels of crude oil from any source. Anthony Chiejina, a spokesperson for the Dangote Group, clarified, “While we appreciate the allocation mentioned by NUPRC, we must state that we have yet to receive these cargoes.”

Chiejina went on to explain that besides the supply negotiated with NNPCL, the refining group had only successfully purchased one crude cargo from a domestic supplier, with all other cargoes procured from international traders.