Finally, Dangote Petrol hits Nigerian market

The Nigerian Government has announced that Dangote Refinery will begin distributing Premium Motor Spirit (PMS) on Sunday, September 15.

This follows the completion of agreements between the government and the refinery on commercial terms for the supply of crude oil and the off-taking and distribution of petrol and diesel.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made the announcement at a news conference in Abuja on Friday.

He stated that the refinery will supply PMS and diesel of equivalent value to the domestic market, with payments made in Naira.

From October 1, NNPC Ltd. will commence the supply of about 385,000 barrels per day of crude oil to the Dangote Refinery, to be paid for in Naira.

Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker, while PMS will only be sold to NNPC, which will then sell to various marketers.

The government expects this initiative to reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve availability of petroleum products in the country.

*Details of the agreement

The deal, which was facilitated by the Presidential Committee on the Sale of Crude Oil and Refined Products, outlines the terms of the supply, including pricing and payment structures.

Diaspora Digital Media understands that under the agreement, the NNPCL will supply 385,000 barrels of crude oil per day to the refinery from October 1, with payment made in Naira.

The refinery will, in turn, supply petrol (PMS) and diesel of equivalent value to the domestic market.

Industry experts have hailed the agreement as a significant milestone in Nigeria’s quest for energy self-sufficiency, with the potential to boost domestic production of petrol and diesel, reduce reliance on imported fuel, and improve energy security.

“This deal is a game-changer for Nigeria’s petroleum industry,” said Zacch Adedeji, Chairman of the Federal Inland Revenue Service and member of the Presidential Committee. “We are confident that it will contribute to the growth and development of the industry, and ultimately benefit the Nigerian people.”

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