Dangote Refinery Speaks on How Much of its Production Will Serve Nigeria's Need
- Dangote Refinery has disclosed the percentage of its petrol output that would sufficiently cater to Nigeria
- The refinery expressed satisfaction that Nigeria has finally found a solution to its petrol supply challenges after many decades
- It noted that at full production capacity, the refinery would cover all of Nigeria's entire needs and leave enough for exportation
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Refinery, revealed that 44% of the refinery's petrol output is sufficient to meet Nigeria's daily demand.
The refinery finally released its first supply of petrol to the Nigerian National Petroleum Company Limited (NNPCL) on Sunday, September 15, after several postponements amid the ongoing fuel scarcity.
However, some controversy still exists surrounding the price of petrol sold to the NNPCL, which has resulted in an upward review of pump prices nationwide.
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Solution to Nigeria's fuel supply challenges
Speaking during a press briefing at the refinery on Sunday, Edwin expressed satisfaction with the start of petrol distribution, noting that after 52 years, Nigeria finally has a solution to its petrol supply challenges.
He stated that the refinery, built by a Nigerian firm, would utilise local crude oil to produce petrol, fulfilling Nigeria's demand and exporting the excess.
Devakumar highlighted that with a crude processing capacity of 650,000 barrels per day, the refinery could produce over 54 million litres of petrol and various other products.
He said:
"44% of the production can meet the entire requirement of the country, 56% of the production has to be exported. So, it is a huge refinery. So, it is not only going to be doing import substitution, but it is also going to make Forex generation through export revenue."
It is important to note that Zacch Adedeji, Chairman of the Presidential Committee on the Sale of Crude Oil and Refined Products, previously confirmed that NNPC Limited will exclusively purchase petrol from Dangote Refinery, while products like diesel will be available for other interested buyers.
Adedeji also mentioned that NNPC Limited will begin selling crude oil to Dangote Refinery in naira on October 1.
However, there is still uncertainty regarding any potential reduction in petrol pump prices, as both Dangote Refinery and NNPC Limited have yet to address pricing matters.
Marketers speculate new petrol price from Dangote
In related news, Legit.ng reported that marketers have demanded direct access to petrol from the Dangote Refinery, criticising the grip the NNCPL has on the market.
The national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said the market should be open to all, as the NNPC is committed to willing buyers and sellers.
According to Ukadike, the market should be open in line with the willing buyer-willing seller commitments of the NNPC, stressing that the marketers are looking at how to build logistics and come up with pricing.
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Source: Legit.ng
