September 21, 2024

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The Dangote Petroleum Refinery has announced the commencement of petrol production at its Lagos facility, marking a significant milestone for the project.

Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, confirmed the development during an appearance on the Brekete Family live show on Monday, noting that production officially began on Sunday.

Edwin highlighted the challenges the refinery faces in selling its products locally, stating that if Nigerian traders or the Nigerian National Petroleum Company Limited (NNPCL) do not purchase petrol from the refinery, the company will be compelled to export the fuel instead.

“We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. So, that was the last stage. The only thing now left out is petrochemicals,” Edwin explained.

He also pointed out that local oil traders have been bypassing Dangote’s products by importing diesel and aviation fuel, which has hindered the refinery’s ability to sell its fuel domestically.

Despite these obstacles, the refinery remains prepared to meet Nigeria’s fuel needs.

“The good news for the country is we have started producing PMS from our refinery since yesterday (Sunday),” Edwin said.

When asked whether the petrol would be sold within Nigeria, Edwin expressed concern over the potential for continued local resistance.

“If the traders or NNPC are not buying the product, obviously, we will end up exporting the PMS as we are doing with the aviation jet and diesel,” he remarked.

With fuel supply issues persisting nationwide, Edwin’s comments underscore the refinery’s readiness to contribute to alleviating shortages but also its willingness to seek international markets if local uptake remains sluggish.

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