The much-anticipated rollout of petrol from the Dangote Petroleum Refinery has been delayed once again, raising concerns among industry stakeholders. The refinery, which has a capacity of 650,000 barrels per day, was expected to begin petrol production between August 10 and 12, 2024. However, sources close to the refinery have confirmed that petrol production will not commence on Monday, as previously projected.
Insiders have disclosed that although the refinery is fully prepared to begin operations, ongoing challenges with crude oil supply have caused a setback. The refinery requires a constant supply of crude oil to maintain operations, but has been struggling to secure adequate crude from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
One top official, who preferred to remain anonymous, confirmed that the refinery is still on track to roll out petrol before the end of August. “All is set. The refinery will roll out petrol this month. However, its concern is that the refinery cannot stop for one minute, it needs the constant supply of crude to keep going,” the official stated.
The refinery has been waiting for a promised delivery of 29 million barrels of crude oil from the NUPRC, but only a fraction of this supply has been received. Another source within the refinery revealed that despite the crude supply challenges, the company is determined to start petrol production this month.
“I can confirm to you that we will start the sale of PMS this August, though the low supply of crude oil has always been affecting the process. But from the information at my disposal, we are 100 percent ready for the supply of PMS,” the source explained.
Petroleum marketers in Nigeria are anxiously waiting for the refinery to begin selling petrol. Both major and independent marketers are eager to reduce their reliance on the Nigerian National Petroleum Company Limited (NNPCL) for fuel supply.
The Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), Clement Isong, noted that while marketers have been purchasing diesel and aviation fuel from the Dangote refinery, they are still waiting for the petrol supply to begin.
Meanwhile, the Dangote Group has accused the NUPRC of not effectively enforcing the Domestic Crude Supply Obligations, which has led to the ongoing supply issues. The NUPRC, however, claimed that it had facilitated the supply of over 29 million barrels of crude oil to the Dangote refinery from January to June 2024.
