The Dangote Petroleum Refinery has warned that it will export its Premium Motor Spirit (PMS), also known as petrol, if local dealers continue to boycott the product.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, stated this on Monday while featuring on Brekete Family live show.
Edwin confirmed that the refinery has started producing petrol, but local oil traders have resorted to importing diesel and aviation fuel, blocking local sales of Dangote fuel. He said:
“We have been exporting aviation fuel, we have been producing kerosene, we have been producing diesel, but yesterday, we started the production of PMS… 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.”
Edwin expressed surprise at the challenges faced by the refinery, stating:
“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… After all these decades, we are exporting crude, importing products.”
He also commented on the laws governing domestic crude supply obligations, saying:
“As per the laws, no crude can be exported, unless all the local refineries requirements are met. That is specified in the Petroleum Industry Act. But we are struggling to get the crude.”
Edwin revealed that the company has started constructing four crude tanks to store imported crude due to low local supply, and that the refinery has not loaded up to 5% of its gantry’s capacity due to low local patronage. He said:
“Go and see our product gantry, we can load 86 tankers at any given time. We can load 2,900 tankers of petroleum products every day, but we are not even loading five per cent, because those who are interested in the trading business, feel that probably this local production is going to affect their established interest, so they are not allowing our products to be sold locally.”
On fuel quality, Edwin noted that the refinery has adopted the Euro 5 grade, saying:
“Our product can be exported to any part of the world, the best in quality, the lowest in sulphur. In terms of pollution, we have no pollution. So, we are producing the best quality products.”
Edwin also defended Aliko Dangote against accusations of being a monopolist, stating:
“He has not even added more houses within the country. Everything he’s putting into manufacturing, creating employment and creating wealth, and yet he is being called a monopolist.”
