According to a report by Reuters, Dangote Refinery initiated the distribution of petroleum products to the local market on Tuesday. This information was confirmed by Devakumar Edwin, the Executive Director of the Dangote Group, as well as leaders of several petroleum marketers’ associations.
Edwin stated, “We have significant quantities. Products are being transported both by sea and road. Ships are queuing up one after another to load diesel and aviation jet fuel. Ships typically load a minimum of 26 million litres, though we aim for vessels carrying 37 million litres for operational efficiency.”
Regarding the sale of diesel in the local market, Abubakar Maigandi, the president of the Independent Marketers Association of Nigeria (IPMAN), mentioned that local oil marketers agreed on a price of 1,225 naira ($0.96) per litre of diesel under a bulk purchase agreement before adding their markup. He noted that the association’s members oversee approximately 150,000 retail stations across Nigeria.
Meanwhile, smaller depots and petroleum marketers are reportedly in the process of obtaining letters of credit to purchase petroleum products from Dangote. Femi Adewole, the executive secretary of the association, commented, “Our members are in discussions with banks, and these discussions have progressed significantly. Once we have our letters of credit, we will begin lifting products.”
In January, Dangote Petroleum Refinery had initiated the production of diesel and aviation fuel. The refinery received six million barrels of crude oil at its two Single Point Mooring (SPM) locations situated 25 kilometers offshore. The first crude delivery occurred on December 12, 2023, with the sixth cargo delivered on January 8.
The first cargo received at the plant originated from Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO). Additionally, the company received an additional one million barrels of Bonny Light crude supplied by the Nigeria National Petroleum Company (NNPC Ltd) via the MT Otis owned by Trafigura, marking progress towards the commencement of refined petroleum product production.