The Dangote Petroleum Refinery is preparing to launch the sale of Premium Motor Spirit (PMS), commonly known as petrol after a recent test run of the product at the refinery, which has a capacity of 650,000 barrels per day.
Industry insiders have disclosed that both the government and the Dangote Group are finalizing arrangements for the distribution of the fuel which is an indication that the product will soon be available in the market.
A government source noted that the sale and distribution of PMS are currently being coordinated with the Federal Government, suggesting that only the Nigerian National Petroleum Company Limited (NNPCL) will be authorized to sell the Dangote fuel at this time.
Intially, the refinery was expected to begin petrol sales in June; however, delays arose due to crude oil shortages and disputes with the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which accused the refinery of producing substandard diesel.
Federal Government's recent intervention to allow the sales of crude oil in local currency have started to be yielding positive results looking at this announcement.
The Dangote Group has previously criticized international oil companies (IOCs) for not supplying crude oil to local refineries.
The Group alleged that IOCs prefer to sell crude through foreign agents, which inflates local prices by $2 to $4 per barrel above the official rates set by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
