Victor EzejaDangote Group has said it would begin sales of Premium Motor Spirit (PMS), also known also petrol, to marketers from August this year.
Chairman of Dangote Group, Aliko Dangote, disclosed this to journalists in Lagos on Sunday.
Join our WhatsApp ChannelPrime Business Africa reports that this is the third time the company is postponing the date of petrol production and distribution in Nigeria.
The company had said it would begin petrol distribution in June and later moved to July and now August.
The 650,000 barrels per day (bpd) refinery that cost $19 billion was commissioned in May 2023 by former President Muhammadu Buhari but commenced operation in 2024, raising hopes of reducing Nigeria’s dependence on importation of petroleum products and the possibility of getting the commodities at lesser prices.
“Petrol production is to commence in July with sales from August,” Dangote said.
READ ALSO: Dangote Refinery Faces Crude Supply Challenges As Marketers Opt For Fuel Import
According to him, the refinery began operations with refining of intermediate products such as polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel.
Prime Business Africa had reported last month that Dangote Refinery exported some cargoes of jet fuel to Europe.
Dangote said the refinery which began steady state production phase in March 2024 is expected to increase production to 500,000 bpd with 15 crude cargoes a month by August, 550,000 bpd by end of the year, and 650, 000 bpd by the first quarter of 2025.
Speaking on the delay in commencement of petrol production, he attributed it to crude supply challenge, which affected the supply of petrol from the refinery, but was resolved last week following the intervention of the Nigeria National Petroleum Company Limited (NNPCL).
Recently the Dangote Industries Limited (DIL) raised the alarm over attempts by international oil companies (IOCs) to frustrate efforts at purchasing crude for the refinery. The company also witnessed fire incident last month.
Aside from the resolving petrol supply challenge, the billionaire industrialist also revealed that the company’s fertilizer unit would resume production in two weeks.
NNPCL Now Owns Only 7.2% Not 20%b Stake
Dangote also clarified that the NNPCL now holds only a 7.2 per cent stake in the Dangote Refinery not 20 per cent as previously reported.
He explained that the 7.2 per cent currently owned by NNPCL in the refinery was due to its failure to pay the balance of their share, which was due in June this year.
According to him, the national oil company’s inability to meet its obligations, consequently reduced its stake in the refinery to 7.2 per cent.
NNPC no longer owns 20 per cent stake in the Dangote refinery. They were met to pay their balance in June, but have yet to fulfil the obligations. Now, they only own a 7.2 per cent stake in the refinery,” Dangote stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
Follow Us