Dangote Refinery has secured a six-month agreement with oil marketers to supply 28 million litres of petrol daily for domestic consumption. This collaboration aims to enhance the availability of fuel across the nation.
The deal was finalized over the weekend, coinciding with the refinery’s announcement of a price reduction for ex-depot petrol, lowering it from N990 to N970 per litre. This gesture is part of the refinery’s commitment to support Nigerians amid ongoing economic challenges.
During a stakeholders’ meeting in Abuja, it was decided that oil marketers would discontinue the importation of petroleum products, relying solely on supplies from Dangote Refinery unless there is a shortage. The agreement involves key players in the industry, including the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian National Petroleum Company Limited (NNPC), among others.
PETROAN’s National President, Dr. Billy Gillis-Harry, expressed optimism that this resolution would stabilize the downstream sector, control price fluctuations, and foster collaboration among stakeholders. The agreement also includes provisions for the availability of aviation fuel and diesel from domestic refineries, with NMDPRA overseeing import allocations based on refinery capacity.
Despite previous concerns regarding Dangote Refinery’s ability to meet market demand consistently, the recent developments have dispelled doubts about its production and logistics capabilities. The refinery has also begun exporting jet fuel to international markets, further establishing its role in the global oil landscape.
Dangote said in the statement, “As the year comes to an end, this is our way of appreciating the good people of Nigeria for their unwavering support in making the refinery a dream come true. In addition, this is to thank the government for their support as this will complement the measures put in place to encourage domestic enterprise for our collective wellbeing.
“While the refinery would not compromise on the quality of its petroleum products, we assure you of best quality products that are environmentally friendly and sustainable.
“We are determined to keep ramping up production to meet and surpass our domestic fuel consumption, thus dispelling any fear of a shortfall in supply.”
In the meantime, a report by S&P Global Commodity Insights indicated that Dangote refinery had successfully exported its jet fuel to various international destinations, including South Korea, as well as airports in Iceland, Tenerife, and London.
With its aviation fuel now also used in Heathrow Airport in the UK, S&P stated that Dangote’s petrochemical facility had continued to scale up production.
It emphasised that between January and October this year, the majority of the refinery’s supply was delivered to the Lome transhipment hub, Togo, with South Korea emerging the largest single export destination and receiving 23,000 bpd of naphtha.
Besides, significant volumes of gasoil were exported to Ghana and other West African nations from the facility, the report added.
It stated that at least eight African countries were gearing up to import Dangote refinery’s products, when it achieves full operational capacity next year, thereby positioning Nigeria as a net exporter of jet fuel, naphtha, and fuel oil.
According to the report, Nigeria can export almost 50,000 bpd more gasoil from Lagos than it would import by next year, with volumes expected to almost triple by 2026.
S&P stated, “From January to October this year, the refinery has delivered the majority of its supply to the Lome transhipment hub off Togo, while South Korea has emerged as its single-largest export location, drawing 23,000 bpd of naphtha.
“Large volumes of gasoil have flowed to Ghana and other West African countries, while for the first time in history, Nigerian-made jet fuel has found its way to airports ranging from Iceland to Tenerife and London’s Heathrow.”
