Reactions as Dangote Refinery Begin Sales of Petroleum Products to Nigerian Markets
The Dangote Refinery has begun the distribution of petroleum products within the local market, marking a notable step towards enhancing the nation’s self-sufficiency in fuel supply.
This milestone, as reported by Reuters and confirmed by Dangote Group’s Executive Director Devakumar Edwin, comes after the refinery started production of diesel and aviation fuel earlier this year.
According to Edwin, the refinery is currently dispatching large quantities of petroleum products, with logistics covering both sea and land transportation. He highlighted the operation’s scale by noting that vessels capable of carrying between 26 to 37 million litres of fuel are now regularly loading diesel and aviation jet fuel from the refinery’s facilities.
The sale of diesel has seen collaboration between the refinery and local oil marketers, including the Independent Marketers Association of Nigeria (IPMAN). IPMAN President Abubakar Maigandi shared that a consensus on the price of diesel at 1,225 naira ($0.96) per litre was reached following a bulk purchase agreement, paving the way for marketers to add their mark-up before sale. IPMAN’s involvement is significant, with its members owning about 150,000 retail stations across the country.
In addition to these developments, smaller depots and petroleum marketers are exploring financial avenues to facilitate purchases from the Dangote Refinery. Femi Adewole, the executive secretary of an association of petroleum marketers, mentioned ongoing discussions with banks to secure letters of credit, which are crucial for initiating product lifting.
The refinery’s operational commencement follows the receipt of six million barrels of crude oil since December 2023, signaling the start of its diesel and aviation fuel production. The initial crude delivery comprised Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), a leading global oil trading firm.
Additionally, the refinery received a million barrels of bonny light crude from the Nigeria National Petroleum Company (NNPC Ltd), further supporting its production capabilities.