Dangote Petroleum Refinery has announced that it will export its Premium Motor Spirit (PMS), also known as petrol if the Nigerian National Petroleum Company (NNPC) Limited and other local petroleum marketers do not purchase it.
During an appearance on the Brekete Family live show on Monday, Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, made this declaration.
Edwin verified the earlier reports that the refinery has started to produce petrol. He pointed out that the domestic sales of Dangote’s fuel had been hampered by local oil traders importing aviation and diesel fuel.
He remarked, “We have already been exporting aviation fuel, producing kerosene and diesel, and we only started making PMS yesterday. This is the final stage, with petrochemicals the sole product still to be produced.”
According to Edwin, the good news for the nation is that Dangote’s refinery began producing PMS on Sunday.
Nigeria spent N2.6 trillion on petrol in the first quarter of 2024, a 46 percent rise from the same period the previous year.
This information is taken from the National Bureau of Statistics (NBS) most recent report on foreign trade for the first quarter of this year.
In 2023, motor spirit imports cost N1.8 trillion in the fourth quarter and N7.5 trillion in total throughout the year.
In response to a question about whether the petrol would be supplied domestically, Edwin stated that regional vendors have been impeding the countrywide distribution of their goods. Dangote has been exporting its petroleum products, including PMS, as a consequence.
According to him, NNPC and dealers will keep exporting petrol if they don’t purchase it, just like they do with diesel and aviation fuel.
Edwin expressed amazement at the business’s unanticipated difficulties once the refinery was prepared to start up.
Edwin emphasized that the Petroleum Industry Act’s domestic crude supply responsibilities stipulate that no oil should be shipped until all local refineries have received their necessary supplies. He did admit, though, that they are still having trouble getting crude oil.
Edwin added that the refinery has started building four 120 million litre crude tanks to hold imported crude because the local supply is insufficient. This is required because of delivery times to guarantee enough supply.
