Dangote Oil Refinery has initiated the supply of petroleum products to the Nigerian domestic market, according to sources disclosed to Reuters on Tuesday.
The products available include diesel and aviation jet fuel, as revealed by Abubakar Maigandi, the head of the Independent Petroleum Marketers Association of Nigeria. Maigandi mentioned that local oil marketers have set the price of diesel at N1,225 ($0.96) per litre after securing a bulk purchase agreement and adding their margin.
The association, representing members with control over approximately 150,000 retail stations across Nigeria, has taken this step.
On the other hand, the smaller Depots and Petroleum Products Marketers Association of Nigeria stated that its members are in the process of acquiring letters of credit to procure petroleum products from Dangote.
Femi Adewole, the executive secretary of the association, mentioned, “Our members are discussing with banks and these talks have reached advanced stages. When we have our letters of credit, we will begin lifting products.”
An executive from the company and several fuel marketing organizations informed Reuters that oil marketers are now loading diesel from the refinery, marking a significant development in Nigeria’s quest for energy self-sufficiency.
Devakumar Edwin, a group executive at Dangote, confirmed the commencement of diesel and jet fuel distribution to the local market. “We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel. Ships load a minimum of 26 million litres, though we try to push for 37 million litre vessels for ease of operations,” Edwin told Reuters.
The Dangote Refinery had initially set January as the start date for domestic supply of petroleum products.
In May 2023, former President Muhammadu Buhari inaugurated the $20 billion Dangote Refinery with a capacity of 650,000 barrels per day.
