Dangote Refinery to Commence Production in October as Diesel Price Rises to N1000

Dangote Refinery to Commence Production in October as Diesel Price Rises to N1000

Dangote Refinery
Dangote Refinery


FIRS

The Dangote Refinery is set receive its first cargo of crude oil in the next fortnight in order to commence operations.

Devakumar Edwin, executive director of Dangote Group, spoke in an interview with S&P Global Commodity Insights on Tuesday.

He said the refinery will start to produce up to 370,000 barrels per day (bpd) of Automotive Gas Oil (AGO), popularly called diesel, and Jet A1, also known as aviation fuel, from October.

This is coming on a day the price of diesel has hit 1000 naira per litre.

Economic Confidential can report that the Shafa Filling Station in the Apo area of Abuja adjusted its price for diesel to 1000 per litre on Tuesday.

Our correspondents from across the city are also reporting similar adjustments in the price.

Experts are of the view that when the Dangote Refinery begins production, the prices of fuel, diesel, aviation fuel and others will crash as the country will no longer rely on importation and the attendant challenges with forex.

The 650,000 bpd capacity refinery was officially inaugurated by former President Muhammadu Buhari in May 2023.

“Right now I’m ready to receive crude. We are just waiting for the first vessel. And so as soon as it comes in we can start,” he said.

Edwin said the refinery will launch in phases, beginning with 350,000 to 370,000 bpd of diesel and jet fuel by October, when the crude distillation unit, sulfur block, and hydrogen plant will be online.

On November 30, he said, the refinery would start the phased ramp up to 650,000 bpd — around half of its petrol.

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