Dangote Refinery Shifts Petrol Supply to July

The Dangote refinery has announced a delay in releasing premium motor spirit (PMS) to the market, moving the anticipated date to July. This announcement was made by Aliko Dangote, President of Dangote Group, during a tour with Lagos State Governor Babajide Sanwo-Olu. Initially expected this month, the petrol supply will now begin between July 10 and 15 due to minor challenges.

Details from Dangote

Aliko Dangote stated, “We had a bit of delay, but PMS will start coming out by 10 to 15 of July. But then we want to keep it in the tank to make sure that it settles. So by the third week of July, we’ll be able to come out to take it into the market.” The delay has elicited mixed reactions from Nigerians.

Public Reactions

Several Nigerians expressed their opinions on social media:

• Anthony Ihenyen (Facebook): He acknowledged the complexity of such a large investment and praised Dangote for his efforts, emphasizing the need for more local investments.
• Emmanuel Ose: Expressed frustration over the recurring delays, highlighting the difficulties in accessing basic needs in Nigeria.
• Adeola Orukotan: Criticized the premature announcement of the refinery’s readiness, noting over a year of delays.
• @ajagunsegun (X): Pointed out the discrepancy between the refinery’s commissioning by former President Buhari in May 2023 and the ongoing delays. He also criticized the government’s handling of the four Nigerian refineries, noting unfulfilled promises by President Tinubu regarding the Port Harcourt refinery.
• Michael Chibuzo: Urged patience, explaining the complexities involved in refinery operations and the necessity of numerous tests before commercial production.
• @Selomsarl (X): Thanked Dangote for the update and inquired about the impact of the refinery on current fuel scarcity, pricing, and distribution.

Previous Announcements and Expectations

Last month, Dangote indicated that the refinery would begin selling PMS in June, aiming to end Nigeria’s petrol importation. Speaking at the Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote expressed optimism about the refinery’s potential to transform Africa’s energy landscape. He mentioned that the refinery would be able to supply sufficient fuel for West and Central Africa, and even export to Brazil and Mexico.

Market Implications

The announcement of the refinery’s operations initially raised hopes among marketers and Nigerians for a significant reduction in petrol prices, from around N700 to potentially N500 or below. The delay has tempered these expectations, with many still hopeful but cautious about the refinery’s impact on fuel prices and availability.

Conclusion

Despite the delay, there remains a sense of anticipation and cautious optimism among Nigerians regarding the Dangote refinery’s potential benefits. The refinery’s ability to commence production and distribution of PMS in July is eagerly awaited, with hopes that it will alleviate fuel scarcity and reduce prices in the Nigerian market.