The seven major oil marketers in Nigeria have gained approval from the Dangote Petroleum Refinery to distribute refined petroleum products from the $20 billion facility. Dealers from the Major Oil Marketers Association of Nigeria (MOMAN) confirmed their registration with the refinery, expressing readiness to commence distribution once commercial terms are finalized.
According to the President of the Dangote Group, Aliko Dangote, the refinery has started producing Automotive Gas Oil (diesel) and JetA1 (aviation fuel), with products expected to hit the market within the month, pending regulatory approvals.
The major marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail, have completed registration with the refinery, setting the stage for purchasing and distribution.
Clement Isong, the Executive Secretary/CEO of MOMAN, stated, “All MOMAN members have registered with Dangote Petroleum Refinery to become marketers of its products.” He emphasized that major marketers would have the products in their stations as soon as they are available for sale.
The refinery, located in Lagos and inaugurated by former President Muhammadu Buhari in May 2023, has received six million barrels of crude oil and commenced production of diesel and aviation fuel. The facility, with a capacity of 650,000 barrels per day, is a crucial step in Nigeria’s quest for self-sufficiency in petroleum product refining.
Isong explained, “We started registration last year. As soon as they say they are ready, we will pick the products. Also, as soon as the commercial terms are set, my members will pick.”
However, Isong remained uncertain about the pricing policy, stating, “I don’t know what the market price will be, but I know that with my international experience in the economics of petroleum, nobody does this business to make a loss.”
The President of IPMAN, Abubakar Maigandi, confirmed plans for a meeting with Dangote refinery management to discuss loading modalities and product pricing. He assured that independent marketers would determine product costs only after loading commences.
President of PETROAN, Billy Gillis-Harry, anticipates a marginal drop in product prices due to reduced logistics costs with domestic crude use. He acknowledged PETROAN’s ongoing discussions with Dangote refinery for supply and distribution arrangements.
While the exact reduction in fuel prices remains uncertain, stakeholders express optimism about the positive impact of Dangote refinery’s production on product availability, employment opportunities, and a potential drop in prices for diesel and aviation fuel.
