The Dangote Refinery has started test runs to produce Premium Motor Spirit (PMS), commonly known as petrol. This milestone will transform the long-standing Europe-to-Africa fuel trade and significantly reduce Nigeria’s dependence on imported refined products.
As reported by Reuters and based on information from industry monitor IIR Energy, the 650,000-barrel-per-day refinery is on track to begin full operations by mid-September after several missed deadlines. Built for $20 billion by Africa’s wealthiest man, Aliko Dangote, the refinery has produced diesel and other distilled fuels.
Earlier this year, Dangote announced that petrol production would begin in May, but this was delayed. The company then set new targets for July and August, but these were also missed due to issues with crude oil supply.
IIR Energy noted that further delays could occur but confirmed that full operations are expected in September. When fully operational, the Dangote Refinery will be crucial in reshaping the Europe-to-Africa fuel trade and reducing Nigeria’s reliance on imported petrol.
Government Moves to Ensure Crude Supply to Dangote Refinery
This progress follows efforts by a Federal Government committee tasked with implementing crude oil sale to local naira refineries. The committee agreed with Dangote Petroleum Refinery, paving the way for petrol production to begin in September.
The Federal Government announced plans to start selling crude oil to Dangote Refinery and other local refineries beginning October 1, 2024. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, confirmed this during a meeting with the Implementation Committee in Abuja.
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service and Technical Sub-Committee, stated that the first petrol delivery from Dangote Refinery is expected next month under the existing agreements.
