The Dangote Petroleum Refinery has issued a stern warning that its Premium Motor Spirit (PMS), commonly known as petrol, will be exported if the Nigerian National Petroleum Company Limited (NNPCL) and other petroleum marketers in the country fail to patronize it. This announcement was made by Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, during a live appearance on the Brekete Family show on Monday.
Edwin confirmed that the refinery had begun producing petrol, following its earlier production of aviation fuel, kerosene, and diesel. He expressed concern over local traders blocking the distribution of Dangote fuel by opting to import diesel and aviation fuel instead.
“We have been producing PMS since yesterday [Sunday], and we are ready to supply the country as much as possible,” Edwin stated. However, he warned that if local traders and NNPCL continue to boycott the product, the refinery would have no choice but to export it, similar to what is being done with aviation fuel and diesel.
Edwin expressed surprise at the challenges the refinery has faced since commencing operations, particularly in securing local crude supplies. He lamented that despite the Petroleum Industry Act mandating that domestic crude requirements must be met before export, the refinery is struggling to obtain adequate local crude and has resorted to importing from the U.S., Brazil, and other countries. This has led the company to construct four new crude tanks, each with a 120 million-liter capacity, to store imported crude due to delays in shipping.
Despite having the capacity to load 2,900 tankers of petroleum products daily, the refinery has only been able to utilize 5% of this capacity due to low local patronage. Edwin attributed this to traders’ reluctance to lift Dangote’s products, possibly fearing the impact on their established business interests.
Edwin reassured that the Dangote refinery’s products are of the highest quality, adhering to the Euro 5 grade standards, which are accepted in Europe and the U.S. The refinery’s laboratory is equipped with the best facilities globally, ensuring that its petrol, aviation fuel, and diesel are among the best in quality and lowest in sulfur content, making them environmentally friendly.
Addressing accusations of monopolistic practices against Aliko Dangote, Edwin clarified that the company’s profits are reinvested in Nigeria, contributing to the country’s GDP, rather than being siphoned off to foreign accounts. He highlighted Dangote’s commitment to creating wealth and job opportunities within Nigeria, even while making profits.
Industry insiders have confirmed that discussions between the Dangote Group and the Federal Government are ongoing to finalize the modalities for the sale and distribution of the refinery’s PMS in the Nigerian market.