The Dangote Refinery, located in Lagos, has commenced processing premium motor spirit (PMS), commonly known as petrol.
According to a report by Reuters, the Nigerian National Petroleum Company (NNPC) Limited is poised to become the initial exclusive buyer of the refinery’s products.
The refinery, with a capacity of 650,000 barrels per day, has begun testing and is expected to roll out petrol in the coming weeks.
Devakumar Edwin, Vice President at Dangote Industries Limited, confirmed that the national oil company is prepared to purchase its products exclusively to meet local demands.
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Recall that this development comes as NNPC faces supply challenges, with the company acknowledging significant debt to international oil traders. The debt, estimated at $6 billion, has contributed to the shortage of fuel supply to local marketers.
However, the exclusive buyer agreement with Dangote Refinery is expected to provide relief to NNPC and help address the persistent fuel scarcity in the country.
The arrangement is also anticipated to lower importation and logistics costs, allowing local marketers to purchase petrol from NNPC at a reduced price.
Futhermore, the Federal Executive Council has approved the sale of crude oil to the Dangote refinery in local currency, on the condition that the refinery sells processed petrol to the country in the same currency.
