Dangote Refinery awaits NNPC on petroleum products rollout

The much-anticipated rollout of Premium Motor Spirit (PMS) from the Dangote Refinery has been delayed, just 48 hours after the initial announcement of production.

The delay has been attributed to the pending finalisation of contractual agreements between the Dangote Group and the Nigerian National Petroleum Company Limited (NNPCL), which is a critical player in the domestic fuel supply chain.

The refinery, which was expected to commence distribution 48 hours after the declaration by the President of Dangote Group, Aliko Dangote on Tuesday, has yet to bring the product to the market.

The refinery had promised to start delivering PMS to the Nigerian market within 48 hours provided discussions are finalised, sparking optimism about a swift resolution to the fuel supply challenges the country is currently battling. However, the delay in contract finalisation with NNPC has pushed back this timeline, leaving the public frustrated by the lack of immediate progress.

Dangote Group had earlier assured Nigerians that the refinery was ready to ease the country’s fuel challenges as there is availability of the product. However, stakeholders suggested that issues around logistics and pricing may be behind the delay.

The delay has sparked concerns about scarcity and the impact on fuel prices and availability nationwide.

According to Dangote Group in a statement signed by the Group’s chief Branding and Communications officer, Anthony Chiejina, yesterday, NNPC, which is the sole buyer of product from the refinery, hasn’t commenced lifting of refined PMS.

This is coming exactly 48 hours after the announcement by Dangote on the production of the product.

The company mentioned that the issue of fixing the price of petrol lifted from the refinery doesn’t arise as the contract with NNPC hasn’t been finalized yet.

“The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can’t determine, fix, or influence the product price, which falls under the purview of relevant government authorities. We are guaranteeing Nigerians of exceptionally high-quality petroleum products that will be readily available all over the country,” he said.

Energy partner, Bloomfield Law Practice, Dr Ayodele Oni, said the delay could be attributed to the pricing which is still being resolved combined with the issue of logistics.

However, another Energy expert, Prof. Dayo Ayoade, cautioned against setting public deadlines, as failure to meet them can erode confidence in one’s statements. He noted that in most countries, there isn’t a constant stream of announcements regarding refinery readiness or product availability, as seen in Nigeria. He added that this is primarily because the entire Nigerian economy is heavily dependent on the output from the Dangote refinery.

He further explained that this is why everyone is anxiously awaiting the outcome, as it feels like the answer to a collective prayer. However, he acknowledged that when dealing with complex technical processes and operations, things can go wrong, saying more time may be needed to fix issues and properly set parameters to ensure the production of high-quality PMS.