Aradel Holdings Plc has revealed plans to commence petrol production at its modular refinery in 2027.

The decision is backed by the removal of subsidies, which has made fuel more profitable.

A modular refinery is a compact, skid-mounted oil processing plant designed for quick deployment and efficient crude oil refining.

Temitayo Ogunbanjo, General Manager, Refinery, who made the disclosure on Thursday in an interview published by Bloomberg, said the deregulation of the petroleum downstream market “has now created a path” to manufacture petrol.

The plant currently produces kerosene, diesel, gas oil and naphtha.

On July 20, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said modular refineries — including Walter Smith, Edo refinery, and Aradel refinery — continued operations, producing about 478,000 litres of diesel per day, with 562,000 litres supplied to the domestic market.

The data also showed that Dangote refinery produced an average of 39.1 million litres of petrol per day during the month.