x

Dangote Refinery Grants NNPC Exclusive Buying Rights as Petrol Production Commences

The Nigerian National Petroleum Company Limited (NNPC) has secured exclusive purchasing rights for the Premium Motor Spirit (PMS), commonly known as petrol, refined by the Dangote Refinery and Petrochemical Company. This development comes as the refinery begins processing petrol after facing delays due to recent crude oil shortages.

Located on the outskirts of Lagos, the $20 billion Dangote Refinery started operations in January, producing various petroleum products, including naphtha and jet fuel. With a capacity of 650,000 barrels per day, it is Africa’s largest refinery and is expected to reduce Nigeria’s heavy dependence on imported oil products significantly.

“We are currently testing the gasoline product, and it will soon be flowing into the product tanks,” stated Devakumar Edwin, Vice President of Dangote Industries Limited. However, Edwin did not specify when the gasoline would be available on the local market. He mentioned that the state-owned NNPC, Nigeria’s sole importer of petrol, would exclusively purchase its petrol.

“If there is no domestic buyer, we will export the petrol, as we have been doing with our aviation jet fuel and diesel,” Edwin added.

The introduction of Dangote Refinery’s petrol into the Nigerian market is expected to alleviate some of the NNPC’s challenges in supplying the local market. The company has been struggling with debts totaling $6 billion to oil traders since January, impacting its ability to maintain a steady supply. This has resulted in persistent fuel shortages and long queues at petrol stations since July. Moreover, fuel prices have surged by 45% from the official price of 617 naira ($0.3942) following the removal of subsidies last year.

Clementine Wallop, Director for Sub-Saharan Africa at political risk consultancy Horizon Engage, commented, “The news that Dangote is processing gasoline comes at a crucial time, especially given NNPC’s recent statements about its difficulties in securing imported supply due to financial strain.” She emphasized the need for greater transparency in NNPC’s finances and questioned how the company would manage its purchasing from Dangote.

Despite being Africa’s top oil producer, Nigeria imports nearly all its fuel due to years of neglect of its national refineries. The NNPC has acknowledged recent reports regarding its significant debt to petrol suppliers, which has placed considerable pressure on the company and poses a threat to the sustainability of the fuel supply.

Olufemi Soneye, Chief Corporate Communications Officer at NNPC, stated, “In line with the Petroleum Industry Act (PIA), NNPC Ltd remains committed to its role as the supplier of last resort, ensuring national energy security.” He assured that NNPC is actively working with relevant government agencies and other stakeholders to maintain a consistent supply of petroleum products across the nation.

Hot this week

Kaduna Partners REA to Boost Renewable Energy Access, Drive Industrial Growth

By Achadu Gabriel, KadunaThe Kaduna State Government, under the...

Today’s Headlines: Galatasaray Recoup €31m From Osimhen Deal; ‘Nigeria...

INSPIRATION: Seeing Myself in the Light of Now

By Mary EwaTechnology is the wealth of the twenty-first...

Over 50 terrorists neutralize, 70 wounded in severe battle with troops

By Achadu Gabriel, KadunaWith renewed vigour and triumph,...

BAVCCA urges Nigerians to defend Dangote Refinery

President of the Bloggers and Vloggers, Content Creators Association...

INSPIRATION: The Family: The Forgotten Powerhouse of Civilization

By Mary EwaFamily — the smallest yet most powerful...

INSPIRATION: Seeing Myself in the Light of Now

By Mary EwaTechnology is the wealth of the twenty-first...

PenCom mulls reintroduction of gratuity as pension assets hit N25trillion

By Ogenyi Ogenyi, UyoThe National Pension Commission, PenCom, has...

Security Operatives Question NDDC MD Over Alleged Coup Financing

By our correspondentThere is palpable tension at the headquarters...

ALSTDI Commends President Tinubu for Extending Adebomehin’s Tenure, Hails Progress in Geospatial Intelligence and National Mapping Reforms

….Says extension reflects confidence in performance and continuity….Urges Surveyor-General...

ALSTDI Commends Tinubu for Extending Adebomehin’s Tenure, Praises Geospatial and Mapping Reforms

….Says extension reflects confidence in performance and continuity….Urges Surveyor-General...

Related Articles

Popular Categories

spot_imgspot_img