Marketers in limbo as Dangote petrol delivery date pushed back

The much-anticipated launch of the Dangote Petroleum Refinery’s petrol production faces uncertainty, as the company grapples with the ongoing crude supply crisis in Nigeria. Initially scheduled to commence production between August 10 and 12, it now appears that the 650,000 barrels per day capacity refinery might not roll out petrol on Monday as planned.

However, multiple officials close to the development have confirmed that all is set for the refinery to begin producing Premium Motor Spirit (PMS) before the end of August. Despite the challenges, the refinery aims to release petrol this month, even as it awaits 29 million barrels of crude oil from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The sources, speaking on condition of anonymity, revealed that the refinery is ready to release petrol as planned, though the low supply of crude oil may impact the process. One top official close to the refinery emphasized the constant need for crude supply to keep the facility operational.

Aliko Dangote, President of the Dangote Group, had previously announced that the refinery would begin petrol production between August 10 and 12, 2024. With PMS marketers eagerly awaiting the sale of the commodity by the refinery this week, the ongoing crude supply crisis threatens to hamper the ambitious plans of the facility.

The Dangote Group has accused the NUPRC of not enforcing the Domestic Crude Supply Obligations properly, claiming that they have not received enough crude oil locally. In response, the NUPRC stated that they had facilitated the supply of over 29 million barrels of crude oil to Dangote from January to June 2024. However, the Dangote Refinery has denied receiving this amount of crude oil.

As the NUPRC and Dangote Group engage in a war of words over crude oil allocations, concerns mount over the refinery’s ability to meet its production targets and alleviate Nigeria’s fuel supply issues. With no immediate resolution in sight, the Dangote Petroleum Refinery’s petrol rollout hangs in the balance.