Dangote Refinery has commenced the production of premium motor spirit or petrol.
It’s also positioning the Nigerian National Petroleum Company Limited (NNPCL) as its first exclusive buyer.
According to Reuters, Dangote refinery, which has a production capacity of 650,000 barrels per day, is nearing the end of its testing phase and will begin supplying petrol in the coming weeks.
Dangote Refinery To Begin Oil Sales
The vice president at Dangote Industries Limited, Devakumar Edwin, also mentioned 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.
The report confirmed that Dangote refinery is ready to roll out petrol in the coming weeks as testing has begun in the 650,000 barrels per day petrochemical plant.
“In line with the Petroleum Industry Act (PIA), NNPC Ltd. Remains dedicated to its role as the supplier of last resort, ensuring national energy security.
“We are actively collaborating with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products nationwide,” NNPC said.
However, he did not mention when the product will hit the market.
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Why Petrol Scarcity Is Here
Nigeria is an oil producing nation, but you will hardly find a fuel station selling petrol without a long queue.
You see, it was earlier reported that NNPC has recently admitted to owing international oil traders approximately $6 billion in subsidy obligations, a debt that has significantly disrupted the fuel supply to local marketers.
The shortage stems from these traders halting petrol imports to NNPC due to the unpaid obligations.
While NNPC initially denied the claims, the company later confirmed that its outstanding debts have played a critical role in the persistent fuel scarcity nationwide.
Also, NNPC Limited recently acknowledged its debt to international oil traders, which has played a significant role in the fuel supply shortage affecting local marketers.
It was earlier reported that NNPC owes these traders around $6 billion in subsidy obligations, prompting them to stop supplying imported petrol to the company.
This financial strain has placed considerable pressure on the Company and poses a threat to the sustainability of fuel supply in Nigeria.
