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Tag: Dangote Refinery

  • Loading of first batch of PMS from Dangote Refinery will commence September 15- FG

    Loading of first batch of PMS from Dangote Refinery will commence September 15- FG

    The Presidential Committee on the Sale of crude oil and Refined Product has announced that loading of the first batch of petrol from the Dangote Refinery will commence on Sunday, September 15.

    A member of the committee and Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed this in Abuja on Friday.

    Briefing journalists, the FIRS boss said that from October 1, the Nigerian National Petroleum Company Limited (NNPCL) will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.

    “I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September,” Adedeji stated.

    He explained that Dangote Refinery will in return supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.

    Other deliberations reached by the committee include the sale of Diesel in Naira by the Dangote Refinery to any interested off-taker while PMS will only be sold to NNPC.

    “From 1 October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira.

    “In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.

    “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now. All associated regulatory costs will also be paid for in Naira.”

     

  • Dangote Refinery begins distribution of PMS Sunday – FG

    Dangote Refinery begins distribution of PMS Sunday – FG

    The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, says the Dangote Refinery will begin the distribution of Premium Motor Spirit (PMS) on Sunday.

    Edun, who was represented by the Executive Chairman, Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, said this at a news conference in Abuja on Friday.

    “I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, Sept. 15.

    “From Oct. 1, NNPC Ltd. will commence the supply of about 385kbpd of crude oil to the Dangote Refinery, to be paid for in Naira. In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, to be paid in Naira.

    “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said.

    Edun said that all associated regulatory costs (NPA, NIMASA, etc.) would also be paid for in Naira.

    “We are also setting up a one-stop shop that will coordinate service provision from all regulatory, and security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in Nigeria Ports Authority (NPA). Lagos.

    “The technical committee that worked to flesh out this initiative will transition to an implementation execution and monitoring committee that will be working out of Lagos for the next three to six months,” he said.

    Edun recalled that the Federal Executive Council (FEC) , under the leadership of President Bola Tinubu, approved the sale of crude oil to local refineries in Naira and corresponding purchase of petroleum products in Naira

    He said that the initiative would help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve availability of petroleum products in the country.

    The minister said that the implementation committee chaired by him, and the other technical committee had worked intensely with NNPCL and Dangote Refinery, to fashion out the details of the modalities for the implementation of FEC approval.

    “We would sincerely like to thank President Tinubu for championing this novel initiative and assure him that he can count on us to implement his vision.

    “I will also like to thank everyone for the hardwork and patriotism exhibited over the last couple of weeks,” he said.

    NAN reports that Edun chaired the presidential committee on the sales of crude oil and refined products for domestic consumption in Naira.

  • Petrol marketers writes Tinubu that our diesel price is too cheap – Dangote Refinery

    Petrol marketers writes Tinubu that our diesel price is too cheap – Dangote Refinery

    Marketers of petroleum products in Nigeria have reportedly written to President Bola Tinubu to complain that the drop in price of Dangote Refinery’s diesel to N900 per litre, is negatively affecting their businesses.

    Devakumar Edwin, Vice President, Dangote Industries Limited, disclosed this on a Twitter Spaces session organized by Nairametrics.

    “Petroleum product marketers in Nigeria have written to President Bola Tinubu to complain that the refinery local prices which have dropped from N1,200 to N1,000 and now N900 per litre are impacting their businesses negatively,” he said.

    Edwin highlighted some of the challenges facing the Dangote Refinery and its impact on Nigeria’s fuel supply and prices.

    According to him, the refinery, located in the Lekki Free Zone near Lagos, struggles to sell about 29 tankers of diesel per day due to low patronage from local petroleum product importers.

    “As a result of this poor local patronage, the refinery exports most of its diesel and aviation fuel,” he said.

    Edwin had earlier said Dangote Refinery products would be exported if the Nigerian National Petroleum Company Limited and other petroleum dealers in the country refuse to patronise it.

    “We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS. So, that was the last stage. The only thing now left out is petrochemicals.”

    “So, the good news for the country is we have started producing PMS from our refinery,” he had said on a radio programme.

    Asked if the petrol would be sold locally, Edwin replied, “Well, I explained how there has been a kind of a blockade from lifting our products within the country. The traders have been trying to block (it), and so now we have been exporting our petroleum products. PMS, we are ready to pump in as much as possible to the country.

    “But if the traders or NNPC are not buying the product, obviously, we will end up exporting the PMS as we are doing with the aviation jet and diesel,” he declared.

    Edwin expressed surprise that the company started facing different challenges it never expected when the refinery was set to commence operations.

    He recalled that the philosophy initially was to add value to the raw materials available in the country, regretting that Nigeria is still exporting crude and importing refined petroleum products after over three decades.

    “The philosophy is to take the crude, and instead of exporting the crude, refine it, add value; export the finished products, and supply the finished products locally. But unfortunately for us, we started facing challenges with the crude supply.

    “What is happening today? We are struggling to get the crude. We are now importing the crude from the US, we are importing from Brazil, and from other parts of the world. So, the whole philosophy has gone upside down. After all these decades, we are exporting crude, importing products,” he added.

    “The same thing is continuing. We are not getting enough crude allocation, and the crude is still being exported. We are forced to import crude from outside. Yes, we are getting some crude locally, but it’s not adequate.”

    Dangote Refinery, with a capacity of 650,000 barrels per day, started naphtha exports in March, low-sulphur straight run fuel oil (LSSR) exports in May, and began selling diesel and jet fuel domestically in April.

    In June, it started exporting diesel fuel meeting European specifications.

     

  • Dangote refinery: No guarantee of lower fuel prices — NNPCL

    Dangote refinery: No guarantee of lower fuel prices — NNPCL

    The Nigeria National Petroleum Company Ltd (NNPCL) said that the start of petrol lifting from the Dangote Refinery does not guarantee a reduction in fuel prices.

    According to Olufemi Soneye, the Chief Corporate Communications Officer for NNPCL, started that global market forces influence the pricing of petroleum products from any refinery, including Dangote Refinery Ltd.

    Soneye emphasized that domestic refining of petrol does not necessarily lead to lower prices. He addressed concerns arising from recent claims about NNPCL’s intentions regarding the Dangote Refinery.

    The company’s statement comes in response to a press release from the Muslim Rights Concern (MURIC). MURIC alleged that NNPCL’s actions are undermining the Dangote Refinery,

    Soneye reassured that the pricing structure remains subject to global market dynamics, and refuted claims of NNPCL’s exclusive control over the Dangote Refinery’s output.

  • Give Dangote refinery a free hand to operate – MURIC tells FG

    Give Dangote refinery a free hand to operate – MURIC tells FG

    Following a fact-finding visit to Dangote Refinery by a team of the Muslim Rights Concern (MURIC) on Thursday, September 5, 2024, the human rights organization has urged the Federal Government to give the refinery a free hand to operate

    The right group in a statement issued on Friday, September 6, 2024 by the Executive Director of the group, Professor Ishaq Akintola said

    The statement reads: “In view of the severe hardship facing Nigerians, in view of the fact that the masses have placed their hope in the likelihood of a drastic fall in the price of petroleum products once the Dangote Refinery starts functioning and in the face of the devastating blow delivered by the Nigerian National Petroleum Corporation (NNPC) by suddenly raising the price of its fuel and banning Dangote Refinery from supplying any other marketer except NNPC, we, the Muslim Rights Concern (MURIC), concerned for the plight of poor Nigerians, went on a fact-finding mission to Dangote refinery.

    “Seventeen members of our organization visited the newly-completed Dangote Refinery at Ibeju-Lekki, Lagos State. Authorities of the refinery granted our request to enter the premises on self-recognition. The visit took place yesterday, Thursday, 5th September, 2024.

    “Although full details of our findings will be disclosed in a press conference to be addressed very soon, we are constrained to issue an advance statement as a precursor to the press conference.

    “Nigerians are going through severe hardship. There is hunger in the land. Inflation has made life difficult for many particularly after the removal of fuel subsidy which shot the price of petrol to the rooftop. But Nigerians were assured of coming relief as they were told that the price of petrol will reduce drastically when Dangote Refinery starts to function.

    “But we were shocked to our marrows when NNPC suddenly announced an upward review of petrol from N617 to N897

    This happened on Saturday, 31st August 2024 (just 24 hours to the commencement of full operations by Dangote Refinery).

    “To make matters worse, NNPC made itself the only marketer of Dangote fuel thereby sandwiching the latter’s product. By taking these two actions, NNPC has effectively taken control of Dangote’s fuel and the real owner cannot determine the price of its own product. This is an ambush, a punch below the belt.

    “If NNPC had not increased the price of its own fuel, the decision to monopolise Dangote’s fuel would have favoured the hoi polloi, but by increasing the price and restricting the supply of Dangote’s fuel to itself alone, NNPC has rendered Dangote Refinery helpless.

    “MURIC finds NNPC’s action to be anti-people, immoral and lacking in conscience. It is an open secret that the prices of most products, particularly food items, are tied to the umbilical cords of petroleum and its price. The latter is the engine room that moves the economy.

    “There is also no gainsaying the fact that Nigerians are hungry today because the price of petrol skyrocketed and the prices of foodstuffs rose astronomically and spontaneously.

    “Nigerians became hungry and justifiably angry. Protests erupted North and South of the country. MURIC was among the patriotic groups that appealed to Nigerians to simmer down. Nigerians were told that the price of petrol would crash when Dangote Refinery comes on board

    “But NNPC has shattered the hope of the jamaahiir (masses) by raising the price of petrol and disallowing other marketers from buying from Dangote Refinery. This is against the spirit of free economy. It contravenes natural law of justice. It is not fair. What was the contribution of NNPC to the new refinery? How can NNPC suddenly take full control of Dangote Refinery, the hope of the masses to whose process it contributed virtually nothing?

    “We charge NNPC to retrace its steps on this matter. It is too sensitive. Nigerians had placed their hopes on a fait accompli status of Dangote’s fuel to reduce hardship. This refinery must not be strangulated.

    “Besides, NNPC’s recent actions appear to stand in contradistinction with the policy of this administration. President Bola Ahmed Tinubu gave Nigerians his word that Dangote Refinery would be encouraged to realize its full potential. Who is NNPC working for, Tinubu or his detractors?

    “NNPC must not allow fifth columnists whose wish is to bring down Tinubu-Shettima administration to have their way. NNPC should know that frustrating Nigerians is one of the fastest ways to bring a regime to a premature end.

    “We, therefore, charge NNPC to go back to its old price. NNPC must also leave Dangote Refinery alone to operate at its maximum capacity, supply freely to marketers and fix its own prices as expected in a truly free market economy.

    “President Bola Ahmed Tinubu supported the supply of crude oil to Dangote Refinery with payment in naira but our team discovered during the visit that crude oil is yet to be supplied. This is alarming. Is it still the cabal? We thought Tinubu had demystified the myth of the cabal.

    “The world is watching and laughing at a nation that has garments yet walking about naked. As the father of the nation, President Tinubu must ensure that Nigeria does not dance naked in the global market place.”

  • NNPC makes fresh delivery of crude oil to Dangote Refinery

    NNPC makes fresh delivery of crude oil to Dangote Refinery

    The Nigerian National Petroleum Company (NNPC) Limited has disclosed it would be supplying a total of 17.6 million barrels of crude oil to Dangote Refinery between September and October 2024 as part of the federal government’s push to drive local production of petroleum products.

    TheNewsGuru.com (TNG) reports NNPC Limited to have said this month alone, the Dangote Refinery will be receiving 6.3 million barrels of crude oil in 7 cargoes and that in the month of October the refinery will receive another 11.3 million barrels of crude oil in 13 cargoes.

    “We have supplied about 30 million barrels of crude oil to Dangote Refinery so far, and this month alone, we will be providing 6.3 million barrels of crude oil to the refinery in seven cargoes. In October, we will be providing another 11.3 million barrels of crude oil to Dangote refinery in 13 cargoes. We are doing everything possible to ensure this situation normalises,” the NNPC said.

    Mr Adedapo Segun, the Executive Vice President, Downstream, NNPC Limited, who made this known in a statement on Thursday, noted that this is in addition to the 30 million barrels of crude oil that had earlier been supplied to the Dangote Refinery.

    He also noted that the current fuel scarcity is expected to ease off in a few days as more stations will begin selling the product and that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of petrol occasioned by unrestricted free market forces.

    Segun said Section 205 of the Petroleum Industry Act (PIA 2021), which established NNPC Limited, stipulated that petroleum prices were determined by unrestricted free market forces.

    He said that the NNPC Ltd. has about 1,000 fuel stations nationwide and was collaborating with marketers to ensure that stations opened early and close late to maintain adequate fuel supply to meet the needs of Nigerians.

    “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.

    “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices,” he said

    On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15 timeline provided by the refinery.

  • JUST IN: NNPC opens up on when Dangote petrol will be available

    JUST IN: NNPC opens up on when Dangote petrol will be available

    The Nigerian National Petroleum Company (NNPC) Limited has disclosed that it is awaiting the timeline provided by Dangote Refinery to make its petrol available for Nigerians.

    TheNewsGuru.com (TNG) reports Executive Vice President of Downstream, NNPC Limited, Mr. Adedapo Segun made the disclosure on Thursday.

    Mr Segun disclosed that Dangote Refinery had given a timeline of September 15th and that the current fuel scarcity is expected to “subside in a few days as more stations recalibrate and begin selling PMS”.

    He stated that foreign exchange (forex) illiquidity has been a significant factor influencing the fluctuation in prices of petrol, which Segun said are governed by unrestricted free market forces, as provided for in the Petroleum Industry Act (PIA), 2021.

    Speaking on TVC News’ “Journalists’ Hangout” show, Segun explained that Section 205 of the PIA, which established NNPC Ltd., stipulated that petroleum prices were determined by unrestricted free market forces.

    According to him, “The market has been deregulated, meaning that petrol prices are now determined by market forces rather than by the government or NNPC Ltd. Additionally, the exchange rate plays a significant role in influencing these prices.”

    On the commencement of lifting PMS from the Dangote Refinery, Segun said that the NNPC Ltd. was awaiting the September 15th timeline provided by the Refinery.

    Segun, who said no right-thinking individual would be comfortable with the current fuel scarcity, added that the NNPC Ltd. has nearly a thousand filling stations nationwide and was collaborating with marketers to “ensure that stations open early, close late, in order to maintain adequate fuel supply to meet the needs of Nigerians.”

    He assured Nigerians: “We are also engaging relevant authorities to ensure products diversions are prevented and timely deliveries to all stations are ensured. The scarcity should ease in the next few days as more stations recalibrate and begin operations.”

  • Dangote makes fresh revelation on contract with NNPC

    Dangote makes fresh revelation on contract with NNPC

    Dangote Group has disclosed that it is yet to finalise contract with the Nigerian National Petroleum Company (NNPC) Limited in order to commence lifting of Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery.

    TheNewsGuru.com (TNG) reports Dangote Group had earlier disclosed that petrol from the Dangote Refinery will be out in filling stations across the country in less than 48 hours and that it was awaiting a nod from NNPC Limited to roll out the product.

    However, with the new disclosure that the contract to lift petrol is yet to be finalised, it, therefore, means there might be delay in the roll out of petrol from the refinery as Dangote has also refuted claims that it has fixed the price of petrol at N897 per litre.

    Anthony Chiejina, Dangote Group Chief Branding and Communications Officer, who made this known in a statement dated 4 September 2024, stressed that the responsibility to fix the price of petrol falls under the purview of relevant government authorities.

    While assuring that the product will be readily available all over the country, Dangote also refuted claims that the NNPC has commenced lifting petrol from the refinery.

    The statement reads: “Our attention has been drawn to a headline “NNPC lifts Dangote Petrol, sells at N897 per lite” published in the BusinessDay Newspapers of Wednesday, 4 September 2024.

    “We would like to state that NNPC has not commenced lifting of refined Premium Motor Spirit (PMS), commonly known as petrol, from our Dangote Petroleum Refinery.

    “Therefore, the issue of fixing the price of petrol lifted from our refinery does not arise, as we are yet to finalize our contract with NNPC.

    “The PMS market is strictly regulated, which is known to all oil marketers and stakeholders in the sector, hence we can not determine, fix, or influence the product price, which falls under the purview of relevant government authorities.

    “We urge the public to disregard the headline as it is misleading and does not represent the true position in this matter. We are guaranteeing Nigerians of exceptionally high quality petroleum products that will be readily available all over the country”.

    Meanwhile, NNPC Limited had opened up on when Dangote petrol will be available, while also revealing that it would be shipping fresh cargoes of crude oil to the refinery as part of the federal government’s push to drive local production of petroleum products.

  • What we are waiting for to roll out petrol – Aliko Dangote

    What we are waiting for to roll out petrol – Aliko Dangote

    Chairman of Dangote Group, Aliko Dangote has said Dangote Refinery is awaiting a nod from the Nigerian National Petroleum Company (NNPC) Limited to roll out its Premium Motor Spirit (PMS), popularly known as petrol or fuel.

    TheNewsGuru.com (TNG) reports Dangote made this disclosure in a video shared via the X platform of Dangote Group on Wednesday, while stressing that the refinery have no control over pricing and that the role of the Dangote Refinery is only to make sure petrol is available.

    “On the pricing, I cannot say anything because we do not control the pricing. The pricing at the moment is controlled by the NNPC, not Dangote. We will wait for them to do that.

    “But, our own for now is to make sure that products are available, and also round-tripping is stopped, where people are just taking Dollars out and not bringing products. Most of the shinanigans will stop. That is what I can guarantee you.

    “NNPC are the ones that will sell to the market and distribute, and that it the current arrangement for Naira-Naira. We are ready on our part. We are waiting for the NNPC to be ready on their part. Once they are ready, we will roll,” Dangote said.

  • Dangote’s fuel supply will aid economic revival – Gov Abiodun

    Dangote’s fuel supply will aid economic revival – Gov Abiodun

    Ogun State Governor, Dapo Abiodun has said production by the Dangote refinery will strengthen the nation’s economy by eliminating constant shortages and conserving foreign exchange.

    This is contained in a statement in Abeokuta  by  Abiodun’s Chief Press Secretary, Lekan Adeniran.

    The governor said:”with the refinery coming on stream, one of the most significant challenges faced by Nigeria for more than three decades—reliance on fuel importation would be solved.

    ”Petrol produced from the 650,000 barrels per day Dangote refinery is expected to hit filling stations in the next 48 hours as modalities with the Nigerian National Petroleum Company Limited have been formalised,” he said.

    The governor noted that  with the Warri and Port Harcourt refineries also being prepared to begin production, Nigerians would heave a sigh of relief from constant fuel shortages, while the economy would also receive a boost.

    Abiodun praised Alhaji Aliko Dangote for his determination in seeing through the multi-billion dollar projects against all odds.

    The governor also commended President Bola Tinubu for his intervention in ensuring that the refinery comes on stream during his administration.

    He praised the president’s commitment to the revitalisation of other refineries in the country, which, he said, would drastically reduce fuel prices when all of them started production.

    ”This significant achievement marks a transformative milestone not only for you as an entrepreneur but also for Nigeria and the broader African continent.

    “The establishment of this refinery represents a pivotal shift in the energy landscape of the region, showcasing the power of vision, resilience, and unwavering commitment to economic development.

    “The Dangote refinery is poised to be a game-changer in the production of petrol, addressing one of the most pressing challenges faced by Nigeria: reliance on imported fuel.

    ” This dependency has not only strained our foreign exchange reserves but has also hindered our potential for self-sufficiency.

    “By producing petrol locally, the refinery will drastically reduce the outflow of foreign currency, thereby strengthening our economy.

    “This move aligns perfectly with the President Bola Tinubu-led administration’s efforts to achieve economic diversification and reduce reliance on oil exports alone.

    “Moreover, the economic impact of the refinery extends beyond just fuel production.

    ”  It is expected to generate thousands of jobs, both directly and indirectly, thus contributing to the reduction of unemployment rates.

    NAN reports that businessman, Aliko Dangote, revealed that petrol produced from his 650,000 barrels per day refining facility will hit filling stations in the next 48 hours as modalities with the Nigerian National Petroleum Company Limited had been formalised.Dangote said this on Tuesday while addressing newsmen announcing the formal production of petrol at the refinery.

    “Our PMS (Premium Motor Spirit) can be in filling stations within the next 48 hours depending on NNPCL,” he said.

    Asked to speak on the pricing of the product from his refinery, Dangote said, “It is an arrangement which is designed and approved by the Federal Executive Council led by President Tinubu.

    ”As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.”

    In December 2023, Dangote,  began operations at his 20billion-dollar facility sited in Lagos with 350,000 barrels a day.

    The refinery, which was initially troubled by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

    The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.

    Dangote also added that the introduction of naira for crude will reduce the demand for foreign exchange by 40 per cent.

    “I want to thank President Tinubu for creating this idea of Naira for crude and Naira for the product. Doing that will give a lot of stability to the Naira and remove 40 per cent of the demand for dollars. That’s not just it, there is a lot of round tripping,” he stated.

    He added that it would become possible to track loaded trucks, hence making it easier to compute the national consumption.