WorldStage Newsonline– The Chairman of Dangote Group, Aliko Dangote has confirmed the addition of 600 million liters of various tankage capacity to the $20 billion 650,000 barrels per day Lagos-based refinery from the current 4.78 billion liters, as the market is eagerly awaiting the supply of fuel from the plant.
Dangote was quoted as saying at the recent Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas that the refinery will turn out to be the strategic reserve of the country in terms of petroleum products.
“The country doesn’t have strategic reserves in terms of petrol, which is very dangerous. But in our plant now, when you came, we had only 4.78 billion liters of various tankage capacity. But right now, we’re adding another 600 million,” he said.
“So effectively, as we go forward, the refinery will be the strategic reserve of the country in terms of petroleum products.”
On whether or not his refinery would crash the pump price of petrol, he explained how the price of diesel fell from 1,700 to N1,200 when diesel from his refinery flooded the Nigerian market, saying, “The issue of gasoline is certainly a different issue. That one is being dealt with by the government.
“But let me give you an example. In diesel, which the industries, transporters and everybody consume; when we first started, it was N1,700, and the dollar conversion was about N1,200 then. Immediately when we started, within two weeks we brought down the price to N1,000. We took it from N1,700 to N1,200 and from N1,200 to N1,700, we have given more than a 60 percent drop in price.
“With the currency now back up to about N1,500 per dollar, the price is still below N1,200. That’s a big improvement, from N1,700 to N1,200. And the diesel is available, we are not living from hand to mouth anymore.”
Dangote alleged that the reason why international oil companies refused to sell crude oil to his refinery was that they did not want him to succeed.
“And I think that is the process that we’re now really going through. But the truth is that, yes, the country, the sub-region, and also the continent, of sub-Saharan Africa, need this refinery. So, you expect them to fight through non-supply of crude, non-purchase of the product, but I think it’s all temporary. We’ll get there,” he added.
The refinery recently shifted the date to commence supply of fuel to July 10–15, 2024, from June.
