September 21, (THEWILL) – Nigerians have long waited for the commencement of the sale of Premium Motor Spirit (PMS) by Dangote Refinery due to its expected benefits. The refinery commenced its first loading of PMS on Sunday, September 15, 2024, which according to the Ministry of Finance is a significant step in Nigeria’s journey toward energy self-sufficiency. However, according to the Federal Government, NNPCL will be the sole buyer of PMS from the refinery for now, and from October 2024, the NNPCL will begin selling crude oil to Dangote Refinery in Naira and purchasing PMS from the refinery in Naira, while diesel will also be sold in Naira to independent marketers.
The decision to make NNPCL the sole off-taker of the PMS from the refinery has raised a lot of dust. Many people were disappointed when the NNPCL announced a hike in the price of PMS, as there was a general belief that PMS prices would drop once Dangote Refinery commenced production and sales. The refinery, which is privately owned and profit-oriented, won’t sell PMS for less than its production cost.
Some major determinants of its production cost are the price of crude oil on the international market, the Naira-to-dollar exchange rate, and the cost of refining crude per litre. The Minister of Finance and Coordinating Minister of the Economy said in a TV interview on Sunday, September 15, 2024, “We are expecting that as this refinery and others ramp up production, scale, and achieve greater economies of s.