The Dangote Refinery is possibly going to experience a delay in the release of gasoline, which was initially expected to occur on Monday.

It was estimated this month by Alhaji Aliko Dangote, President of the Dangote Group, that the refinery will start producing gasoline between August 10 and August 12, 2024.

But according to research by The VIZTADAILY NEWS, the refinery with a daily capacity of 650,000 barrels may not produce gasoline on Monday (today).

All was set for the refinery to start producing the much awaited Premium Motor Spirit before the end of August, however, as several officials with knowledge of the development confirmed to The VIZTADAILY on Sunday.

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Everything is prepared. This month, gasoline will be produced at the refinery. It worries, though, that the refinery cannot one of the senior officials at the refinery told The VIZTADAILY NEWS on Sunday, speaking under anonymity, “It needs a steady supply of crude to keep going, so stop for one minute.’

The Dangote oil refinery, which is scheduled to start supplying the eagerly anticipated Premium Motor Spirit, often known as gasoline, into the market today, may suffer as a result of the continued issue in the crude supply, according to additional research.

This is also when PMS marketers watch for this week’s commodities sale by the refinery.

As the refinery awaits 29 million barrels of crude oil from the Nigerian Upstream Petroleum Regulatory Commission, it has ramped up its efforts to launch gasoline in August, according to reliable information obtained by The VIZTADAILY NEWS.

trustworthy resources Our correspondent was informed by those with knowledge of the issue that the refinery is prepared to release gasoline this month, notwithstanding the current oil crisis.

The sources, who wished to remain anonymous due to the delicate nature of the subject, revealed that the corporation is fully prepared to proceed with the scheduled fuel pumping. They did note that the procedure might be impacted by the limited supply of oil.

Although the procedure has always been hampered by the limited supply of crude oil, I can assure you that we will begin selling PMS in August. However, according on the data available to me, we are completely prepared for the delivery of PMS,’ the insider said.

According to another knowledgeable source, the refinery is still awaiting 29 million North U.P. petroleum reserves in barrels.

Dangote was promised 29 million barrels, but the NUPRC has not yet delivered on that pledge. That is still what they are waiting for.

Unexpectedly, the 29 million barrels that were scheduled to be sent to the refinery never arrived; nonetheless, the NUPRC informed the media on Friday that the oil had been delivered.

Although just six shipments have been supplied, the Dangote refinery requires fifteen for September.

How about he gets the last nine cargoes, in your opinion?

importing will be necessary once more. Local refineries should purchase in naira, the President stated, but only if the price is equal to that of foreign markets. Why is that different? Inquiring, she did.

According to information collected by our source with reliability, Dangote would expand the gasoline supply. August: Because of price differences, the product might not be available for local sale.

According to industry experts with knowledge of the business, traders cannot compete with the current gasoline prices that the Nigerian National Petroleum Company Limited is offering.

‘It must be offered at a competitive price for Dangote to sell to Nigerians.’

What means do you think Dangote would be able to sell at a price lower than the cost if he sources crude at the international rate? Therefore, selling outside of the nation will be preferable to selling at a loss within Nigeria.

Nigeria is being severely harmed by the politics involved in the oil and gas industry.

It’s disheartening that people who profit from the importation of petroleum are like former President Olusegun Obasanjo stated. Dangote,” the unnamed expert remarked.

Reluctantly speaking to our reporter, a few refinery employees insisted that everything was prepared for the sale of gasoline, but they were unsure of the precise time and cost.

One of the employees revealed, ‘I hear PMS will be out probably by next week, but I don’t know the exact date,’ beseeching not to be named since he was not permitted to speak to the media.

29 million barrels

According to The Viztadaily News, there was a verbal altercation between the Dangote refinery and the NUPRC on the purported delivery of 29 million barrels of crude oil to the refinery.

On Thursday, the Dangote Group charged that the NUPRC was not doing enough to uphold the Domestic Crude Supply Obligations laws. stating there wasn’t enough local crude available for the refinery.

In response, the NUPRC refuted the assertion and said that, between January and June 2024, it made it easier for Dangote to receive nearly 29 million barrels of crude oil.

Through the use of the monthly production curtailment platform, the NUPRC claimed to have made it easier for refineries such as Dangote to receive local crude oil.

‘A breakdown reveals that between January and June 2024, nine refineries benefited from the 32,088,122 barrels of crude, with Dangote alone receiving 29,047,098 barrels out of the total supply.’

The commission claims that 949,670 barrels of crude were delivered to the Warri refinery, 823,395 barrels to the NDPR refinery, 471,123 barrels to the Port Harcourt refinery, 419,541 barrels to the Seplat-WPSOL refinery, and Waltersmith-WSPOL refinery. acquired 296,353 barrels.

Other recipients on the list are the refineries in Edo, which received 58,504 barrels of crude, and Du-port, which received 22,438 barrels.

The statement went on to say that the commission would not employ the ‘presumptuous and arbitrary’ revocation of licenses due to the ‘sanctity of contract,’ but would instead pursue its mandate and revoke licenses as needed.

The Dangote Group, however, quickly responded by denying ever having received 29 million barrels of petroleum from anywhere.

‘We receive NUPRC’s statement that they have facilitated the allocation of 29 million barrels of crude oil to the Dangote Petroleum Refinery and Petrochemicals, we would like to thank them,’ said Anthony Chiejina, spokesman for the Dangote Group.

for this allotment, but we also want to inform them that these shipments have not yet arrived.

‘NUPRC has only helped with the procurement of one oil cargo from a domestic producer thus far, aside from the term supply we bilaterally agreed with NNPCL. The remaining shipments that we have handled were acquired from foreign merchants.

Chiejina went on to say that the refinery’s only request was that Nigerian refineries purchase crude directly from Nigerian producers rather than through foreign middlemen.

‘Sadly, the NUPRC has effectively acknowledged in their statement that they will not be able to uphold the PIA’s domestic crude supply obligation, using the’sanctity of contracts’ as justification.’ According to Chiejina.

The commission was investigating the refinery’s allegations that it did not receive the 29 million barrels allotted, according to a statement provided by Olaide Shonola, the NUPRC spokesperson, to our correspondent last Sunday.

According to Alhaji Aliko Dangote, the president of the Dangote Group, Nigerians are starting to wonder if the refinery at Dangote would be able to produce gasoline this month as Summer goes on.

Since the facility started operating a few months ago, a crisis of crude shortage has been plaguing many Nigerians.

From April, when the refinery started selling diesel and aviation fuel, Dangote had to delay the supply of PMS about three times, according to The VIZTADAILY NEWS.

Dangote was founded in May. informed the people of Nigeria that as soon as the refinery started selling gasoline in June, fuel imports will cease entirely.

Dangote stated that the refinery would stop importing an average of one billion liters of PMS per month into Nigeria starting in June during the Africa CEO Summit in Rwanda.

He claims that starting in June, Nigeria won’t need to import gasoline thanks to the Dangote refinery’s established plans.

He declared, ‘As of right now, Nigeria has no reason to import anything other than petroleum (petrol), and by the end of June, or within the next four or five weeks, Nigeria should not import any petroleum products at all, not even a single drop of a liter.’

We possess enough fuel to provide at least the diesel to be donated to Central and West Africa, as well as all of West Africa. We can supply all of the continent with aviation fuel, plus we have enough to ship to Brazil and Mexico.

The production of diesel and gasoline will commence in the coming month of June, when jet fuel has been launched. It can then take most African crude, which is what that would accomplish.

Dangote’s announcement in June that he would no longer be able to discharge gasoline into the market in time for the sixth month of the year caused a stir among Nigerians.

He declared, ‘We had a little delay, but PMS will start,’ while having a tour of the facility with Lagos State Governor Babajide Sanwo-Olu and other dignitaries.

to be released between July 10 and 15. When it settles, though, we want to leave it in the tank. Consequently, we’ll be able to launch it into the market by the third week of July, Dangote had stated.

This was unable to occur in July, though, as Dangote once more informed reporters that the fire that occurred on June 26 at the refinery’s effluent treatment facility had affected the gasoline supply.

He stated that August 12 to August 15 was when the product would launch.

Promoters anticipate Dangote.

Fuel distributors in Nigeria, which is meanwhile, reported that they had yet to get word from the refinery regarding when it will start releasing fuel.

Large-scale and independent marketers alike expressed interest in purchasing PMS from Dangote, particularly after relying on the Nigerian National Petroleum Company Limited for fuel for a long time.

According to Clement Isong, the Executive Secretary of the Major Energies Marketers Association of Nigeria, the major marketers are awaiting word from the Dangote Group, as reported by The VIZTADAILY NEWS on Sunday.

As per his statement, the majority of MEMAN members obtain aviation fuel and diesel from the Dangote refinery, while PMS is currently purchased by them from the NNPC.

‘We’re still holding out for them. Because of the difference in pricing, only the NNPC imports PMS at the moment. We are therefore waiting (for the Dangote refinery).

‘At the moment, the Dangote refinery supplies us all with ATK aviation fuel and AGO diesel. To the best of my understanding, advertisers are not yet purchasing PMS,’ Isong said.

the crude crisis

The VIZTADAILY NEWS remembers that the Dangote Group’s management had claimed that the International Oil Companies were still impeding the refinery’s ability to supply crude oil with a capacity of 650,000.

The group claimed that the IOCs insisted on supplying crude oil to its refinery through their international agents, claiming that this would lead the local price of crude to keep rising because the trading arms provide cargoes at prices that are higher than the NUPRC’s official price, between $2 and $4 per barrel.

Additionally, it claimed that when it comes to selling the crude they produce in Nigeria, global oil companies appear to be giving Asian nations priority.

According to Mr. Devakumar Edwin, Vice President of Oil and Gas of Dangote Industries Limited, ‘If the Domestic Crude Supply Obligation requirements are carefully implemented,

this will make sure that, as required by the Petroleum Industry Act, we deal directly with the Nigerian firms that produce crude oil.

Edwin maintained that the company has continuously been thwarted in its demands for locally produced petroleum to be used as feedstock for its refining process by IOCs operating in Nigeria.

He emphasized that the oil corporation was occasionally offered cargoes at a $2 to $4 (per barrel) premium over the official price set by the Nigerian Upstream Petroleum Regulatory Commission when they were offered by the trading arms.

In an interview on national television, Gbenga Komolafe, the Chief Executive of the NUPRC, stated, ‘It is ‘erroneous’ for one to say that the International Oil Companies are refusing to make crude oil available.’

Edwin was responding to this comment. given that the Petroleum Industry Act stipulates that a willing-buyer, willing-seller relationship must exist, to local refiners.

The assertion made by the Dangote official was refuted by Farouk Ahmed, the Chief Executive of the Nigerian NMDPRA, who stated that Nigeria could not primarily rely on the Dangote refinery for its petroleum supplies.

Additionally, Ahmed claimed that Dangote diesel was sulfur-richer than diesel that was imported into the nation.

However, Aliko Dangote, the president of the Dangote Group, refuted the accusation,

questioning how he could have a monopoly when the Nigerian National Petroleum Company Limited was spending $4 billion to renovate government-owned facilities.

Since then, President Bola Tinubu has directed the NNPC to sell Dangote crude oil in naira.

Accelerate the supply of crude oil

marketers of oil who contributed to In the topic, it was requested that the International Oil Companies and the NNPC expedite the process of supplying local refineries with sufficient quantities of crude oil in naira.

Chief Ukadike Chinedu, the National Publicity Secretary, responded, ‘I think the NNPC is on top of this matter,’ in response to Dangote and other domestic refiners’ claim that they had not yet received crude in naira or as needed.

But I have to say that they have to move quickly to make sure that crude oil gets to the refineries. However, it is important for you to realize that obtaining anything from the government is a difficult process that requires following certain procedures.

‘We acknowledge the existence of procedures, but we offer guidance to those who are putting them into practice.’

these procedures to speed up the process so that the refineries may begin refining as soon as possible and lower the price of these petroleum products, which have continued to be expensive for Nigerians.

‘Considering that Nigeria has refineries, it defies logic that, as an oil-producing nation, our country still has a high level of refined products,

and that we continue to import these items from abroad. Quick action is required of us.

Mustapha Zarma, the National Operations Controller of IPMAN, also spoke on the subject and urged NNPC and IOCs to work toward providing crude oil to domestic refineries in both naira and the necessary amounts.

This, he claimed, was due to the significant profit that the domestic crude oil supplier oil would effect on Nigeria’s economy and local currency.

‘The President’s order on the supply of crude oil to Dangote and other nearby refineries is a positive step that would support the value of the naira.

This is due to the fact that the petroleum industry drives the majority of the need for foreign exchange.

Thus, I think there won’t be as much pressure on the naira if the refineries get crude oil in naira.

It is a positive trend that NNPC and the oil producing businesses ought to put into action.

They should also work to guarantee the supply. Naturally, given the processes involved, this might not happen right away, but the important thing is that it should move as quickly as possible to avoid our native currency from seeing additional depreciation,’ Zarma said.

Dangote Refinery