Emmanuel Ochayi
Oil Marketers Sign Six-Month Agreement with Dangote Refinery
Oil marketers have finalised a six-month agreement with Dangote Refinery to supply 28 million litres of petrol daily, ensuring consistent domestic availability.
The $20 billion refinery, located on the outskirts of Lagos, has also announced a price reduction for Premium Motor Spirit (PMS) from ₦990 per litre to ₦970 as reported by Prime Business Africa.
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At a stakeholders’ meeting in Abuja, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), alongside key players like the Nigerian National Petroleum Company Limited (NNPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), agreed that oil marketers would prioritise sourcing products from Dangote Refinery.
PETROAN spokesman Dr. Joseph Obele stated, “This is a milestone for Nigeria’s oil sector. By working directly with Dangote Refinery, we aim to stabilise supply and address concerns about fluctuating prices.”
Relief for Nigerians Amid Price Adjustments
The refinery’s decision to reduce PMS prices has been widely welcomed. Dangote Group’s Chief Branding Officer, Anthony Chiejina, explained the move, saying, “This reduction is our way of showing gratitude to Nigerians for their support. We aim to ease the burden on consumers while ramping up production to meet domestic demand.”
Dr. Billy Gillis-Harry, National President of PETROAN, added, “This deal is not just about petrol; it’s about fostering collaboration, ensuring transparency, and driving economic growth in Nigeria.”
Stakeholders Address Capacity Concerns
Some stakeholders had initially questioned whether Dangote Refinery could handle Nigeria’s demand, but the company assured its readiness. “We are determined to prove our capacity by delivering consistent and high-quality products,” Chiejina said.
The agreement also includes provisions for diesel and aviation fuel, with NMDPRA tasked with ensuring smooth allocation of import volumes when needed.
READ ALSO: Mixed Reactions As Dangote Refinery Lowers Petrol Ex-Depot Price To N970 From N990
Export Success Highlights Global Reach
Beyond domestic supply, Dangote Refinery has achieved significant export milestones. According to S&P Global Commodity Insights, the refinery has supplied jet fuel to international destinations, including Heathrow Airport in the UK and airports in Iceland and Tenerife.
The report revealed, “Between January and October, South Korea emerged as the largest export destination, receiving 23,000 barrels per day of naphtha, while gasoil was delivered to Ghana and other West African nations.”
Positioning Nigeria as an Energy Leader
With plans to achieve full operational capacity by next year, Dangote Refinery is set to transform Nigeria into a net exporter of fuel products. PETROAN believes the agreement will attract further investment and solidify Nigeria’s position as a regional energy hub.
Dr. Obele concluded, “This collaboration marks a turning point. With Dangote Refinery leading the charge, we’re confident that Nigeria’s downstream sector is on the path to sustainable growth.”
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
