Hope was rekindled on Wednesday that the raw deal experienced Nigerians over the perennial fuel supply crisis may soon come to end as Dangote Refinery and Petrochemical Limited launched into the Nigerian market the maiden consignment of premium motor spirit (PMS), popularly called petrol from its production line.
For Euro-V brands of petrol and automotive gas oil (AGO), also known as diesel, are reputed to be some of the world’s most qualitative petroleum products.
Briefing journalists at the formal introduction of the products into the Nigerian market, the President of Dangote Group, Aliko Dangote, said the products may become available to Nigerian consumers within the next 48 hours if the Nigerian National Petroleum Company Limited (NNPC Ltd.) is able to resolve all logistics issues for their distribution.
The launch of the product was coming amidst a fresh 45.38 percent hike in the retail price of petrol by the NNPC from N617 to N897 per litre.
The adjustment in the price of petrol across the country came on the heels of last Sunday’s admission by the NNPC that it was increasingly becoming a herculean task bearing the burden of importing and distributing petroleum products in the country alone.
As the sole importer and supplier of petroleum products, the NNPC said the pressure of serious pressures its $6 billion debt obligations to international oil traders was increasingly weighing on its capacity to continue to exercise that role as a fuel supplier of last resort.
But, Dangote said the coming into production of fuel from his 650,000 barrels per day single-train refinery would soon provide Nigerians the opportunity to find out for the first time what the country’s actual fuel consumption has been.
The NNPC has always claimed the country’s national fuel consumption capacity ranged between 60 and 120 million litres per day, a figure most Nigerians have always disputed.
Reflecting on the milestone achievement of commencing local refining of PMS more than 28 years after Nigeria’s four refineries ceased domestic refining, Dangote said the development would boost the industrial and manufacturing sectors of the country’s economy.
The operation of the refinery, he noted, would significantly reduce the level of importation of petroleum products, along with the huge foreign exchange, while contributing to the stability of the naira, lowering inflation, and drastically cutting down on the cost of living.
Accompanied by Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, and Group Commercial Operations Director at DIL, Hajiya Fatima Aliko-Dangote, Dangote described the milestone as a transformative moment for Nigeria, ending years of fuel imports.
While expressing gratitude to Nigerians for their support, Dangote and praised President Bola Ahmed Tinubu for fostering an environment that made the successful launch of production from the refinery possible.
“Today is a momentous occasion because Nigeria has not produced petrol, or gasoline, for many years. I want to extend my gratitude to the people of Nigeria and to President Bola Ahmed Tinubu’s administration for creating the environment that has enabled us to achieve this monumental task. This development will provide energy for our nation’s growth, development, and prosperity,” he said.
“I want to personally thank Mr. President for introducing the concept of ‘Naira -or-Crude’ and ‘Naira-for-Products’ policies. This initiative will bring the much-needed stability to the Naira by reducing the demand for dollars in the market by about 40%, which will help stabilise the exchange rate.
“It will also address issues like ‘round-tripping,’ where fuel is documented, but doesn’t actually enter Nigeria. With this new refinery, we will have a clear view of the true consumption. We’ll be able to track every loaded truck and, as much as possible, monitor loaded ships. This will allow us to precisely determine consumption patterns, though that’s a topic for another discussion.
“I believe this refinery will transform not only Nigeria, but also the entire Sub-Saharan Africa. Our capacity will not only meet Nigeria’s needs but also serve the demands of the broader region,” he said.
On the sample of the PMS, Dangote said the petrol might be a bit cleaner than the imported consignment, compared to what we had before.
He said the product was not only of the highest quality, but would ensure that consumers’ vehicle’s engine would last longer, adding that the quality of the fuels could match any premium standard worldwide, including those in Europe and America.
“No one can surpass us in terms of quality. We are committed to ensuring that starting October, there will be no need to import polypropylene. Our petrochemical plant will be fully capable of meeting all local demands,” Dangote stated.
He gave the assurance that the refinery would guarantee the availability of petrol in Nigeria, clarifying that the nation’s oil company, the NNPC Limited, was responsible for controlling petrol pump prices.
Dangote described the development as a significant turnaround for the country, ending years of not producing a single litre of petrol domestically.
He said while Dangote Refinery would ensure a steady supply of fuel from the refinery, the NNPC would manage pricing.
“Pricing is controlled by NNPC. For now, we focus on ensuring that the products are available—that’s what I can guarantee,” Dangote said.