The $20 billion Dangote Refinery has commenced the supply of diesel and aviation fuel to the domestic market.
The Chief Executive Officer of the Major Energy Marketers Association of Nigeria, Mr. Clement Isong, confirmed that their members have initiated the lifting of diesel and aviation fuel from the Dangote Refinery, saying “It is a good development that will impact the domestic market positively.”
Similarly, the Executive Secretary of the smaller Depots and Petroleum Products Marketers Association of Nigeria, Femi Adewole, revealed that discussions with banks are in advanced stages, indicating imminent product lifting. He stated the importance of securing letters of credit for smooth operations.
Though the President of the Independent Petroleum Marketers Association of Nigeria, Alhaji Abubakar Maigandi Shettima-Garima, could not be reached for comment, another member highlighted the commencement of diesel lifting by independent marketers. This increased supply is anticipated to alleviate pressures on the domestic market.
Dangote Refinery’s Group Executive overseeing development, Devakumar Edwin, shared insights into the operational progress. “We have substantial quantities available, with products being evacuated both by sea and road,” he affirmed. Edwin highlighted the efficient loading process, with ships lining up to transport diesel and aviation jet fuel.
Under the bulk purchase agreement signed with Dangote Refinery, local oil marketers have agreed upon a price of 1,225 naira ($0.96) per litre of diesel. This pricing structure allows for covering logistics and other associated costs, ensuring sustainable operations.
