Dangote Refinery Set to Commence Petrol Production in August 2024 Following Resolution of Crude Supply Issues
Alhaji Aliko Dangote, President of the Dangote Refinery, has announced that the refinery is poised to begin petrol production in August 2024.
This development follows the successful resolution of crude oil supply challenges with the assistance of the Nigerian National Petroleum Company Limited (NNPCL) and the federal government.
In a briefing with senior journalists in Lagos on Sunday, Dangote shared that the crude supply issues, which had previously hindered petrol production, were resolved last week thanks to government intervention.
The announcement was made during a guided tour of the refinery, situated in the Lekki Free Trade Zone in Lagos.
Recently, Dangote Industries Limited (DIL) voiced concerns about attempts by international oil companies (IOCs) to obstruct their efforts to procure crude oil for the refinery.
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In June, Devakumar Edwin, Vice President of Oil and Gas at DIL, expressed frustration to energy editors, highlighting the deliberate hurdles posed by IOCs.
“Despite the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) doing their utmost to allocate crude for us, the IOCs are intentionally and willfully hindering our efforts to purchase local crude,” Edwin stated.
“It appears their goal is to ensure the failure of our Petroleum Refinery. They either demand exorbitant premiums or claim that crude is unavailable.”
Edwin further revealed that, at one point, DIL had to pay $6 above the market price for crude. This predicament forced the refinery to reduce output and resort to importing crude from distant countries like the United States, thereby escalating production costs.
With the recent intervention by the federal government, Dangote Refinery is now on track to commence petrol production, marking a significant milestone in Nigeria’s quest for energy self-sufficiency and economic growth.