Dangote refinery commences sale of petroleum products

The executive director of the Dangote Group, Devakumar Edwin has announced on Tuesday, March 2, that the Dangote Refinery has begun supplying petroleum products to the local market.

Reuters reported that this was verified by executives belonging to various associations of petroleum marketers.

He said: “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 litres vessels, for ease of operations.”

Products to sell cheaper

The president of the Independent Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, spoke about selling diesel into the local market.

According to him, local petroleum marketers set a price of N1,225 ($0.96) per litre of diesel after entering into a bulk purchase agreement and then added their markup. He said the association's members own over 150,000 retail stations in Nigeria.

Smaller depots and petroleum marketers are reportedly looking for letters of credit to purchase petroleum products from Dangote.

Femi Adewole, the association's executive secretary, said: “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."

The Dangote Petroleum Refinery had started producing aviation fuel and diesel earlier in January.

Six million barrels of crude oil were delivered to the refinery at its two SPMs, 25 kilometres offshore, the business stated in a statement announcing the start of operations.

Recall that on December 12, 2023, the first delivery of crude oil was made, and on January 8, 2023, the sixth shipment was delivered.

One of the biggest trading businesses in Nigeria and the world, Shell International Trading and Shipping Company Limited (STASCO), sent over 8 million barrels of crude oil each day, and this was the first shipment to arrive at the factory. It was Agbami crude grade.

With the delivery of an extra million barrels of bright light crude from the Nigeria National Petroleum Company (NNPC Ltd.), the company took a step closer to starting the manufacturing of refined petroleum products.