Dangote Refinery Gives Date To Begin Sale of Fuel as More Crude Oil Arrives from US for Production
- Dangote Refinery has bought more crude oil from the United States as it prepares to begin sale of petrol
- Report shows that the United States, which is one of the world's largest crude oil exporters, sells cheaper crude
- When the Dangote refinery begins the sale of petrol, it is expected that the retail price for the product will drop just like the diesel
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery is gearing up to commence the sale of petrol after successfully launching diesel.
A report by Bloomberg stated that the plant has been shipping crude oil in recent weeks from the US to ramp up production.
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The report added that the plant is readying two units to enable gasoline (petrol) output, which will transform the fuel market in Nigeria, West Africa, and beyond.
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Alan Gelder, vice president of refining, chemicals, and oil markets at the consultancy firm Wood Mackenzie, quoted in the report, said:
“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year.
“When the RFCC comes online, that’ll really shake things up because it alters the West African gasoline supply balance,” referring to a residue fluid catalytic cracking unit that upgrades heavier products."
Wood Mackenzie expects the petrol-focused units to be online this summer, while other analysts expect the RFCC to take until the end of the year.
Dangote set date for petrol sale
Punch reports that Dangote Industries said that petrol deliveries will start in May 2024. Dangote's entry into the market, similar to diesel, is expected to help reduce the current diesel price.
Legit.ng had earlier reported that the refinery announced a reduction in the price of diesel frdiesel200/litre to N1,000/litre,
FG gives new instructions on oil sales.
Legit.ng also earlier reported that the federal government announced that indigenous refineries can now buy crude oil in naira or dollars.
The government disclosed this through the Nigerian Upstream Petroleum Regulatory Commission(NUPRC) at a briefing in Abuja on Monday, April 16, 2024.
According to NUPRC, entities like Dangote and other modular refineries nationwide must now decide which currencies to pay for crude oil.
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Source: Legit.ng
