L-R: Vice President, Oil & Gas, Dangote Industries Limited, Devakumar Edwin; President/CE, Dangote Industries Limited, Aliko Dangote, holding a sample of refined PMS; Group Executive Director, Commercial Operations, Dangote Industries Limited, Fatima Aliko Dangote during the unveiling of the first output of the Premium Motor Spirit (PMS) product (Petrol), from the Dangote Petroleum Refinery, Lekki Lagos on Tuesday, September 3, 2024
Guaranteed that the Dangote Refinery price for PMS remains globally competitive, the Nigerian National Petroleum Company Limited (NNPCL) has notified the Nigerian Upstream and Downstream Petroleum Regulatory Authority (NMDPRA) that it would not be importing petroleum products from October. NNPCL Sunday, September 15, 2024, started lifting PMS from the refinery at a price of N898 per litre which many Nigerian have expressed strong reservations, saying there may be a lot that behind the high price which may not be made public for now.
Already, NNPC has not placed any petrol import supply orders for October 2024.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zach Adedeji had announced on Friday that NNPC would begin lifting petrol from the $20 billion refinery on September 15, with an initial 25 million litres per day.
According to a report, the NNPC would from October 1 commence the supply of about 385,000 barrels per day of crude oil to the refinery, which will be paid for in naira.
As part of the agreement, the refinery would supply petrol and diesel of equivalent value to the domestic market, also to be paid in Naira.
However, diesel is expected to be sold in naira by the refinery to any interested off-taker, while petrol will only be sold to NNPC for distribution to various oil marketers.
The NMDPRA is further expected to revalidate the production figures ahead of plans by the national oil company to stop placing orders for petrol importation from October.
Based on this forecast for petrol from domestic refineries, the NMDPRA was said to have stated that a total of 389.16 million litres of petrol will be produced in September.
However, in October, November and December this year, the country is expected to produce 1.09 billion litres, 1.08 billion litres and 1.45 billion litres respectively.
For January, February, and March 2025, it was learnt that the projected productions are 1.47 billion litres, 1.34 billion litres, and 1.47 billion litres.
As part of the resolution, Adedeji said NNPC would be the sole off-taker of petrol from Dangote Refinery while diesel from the facility would be sold directly to any interested marketer.
While crude supplied to Dangote Refinery would be paid in naira, the FIRS boss added that both petrol and diesel from the refinery as well as all costs associated with the transactions would also be paid in the local currency.
