In a significant development, seven major oil marketers in Nigeria have officially registered with the Dangote Petroleum Refinery, expressing their commitment to lift and distribute refined petroleum products from the $20 billion plant. Members of the Major Oil Marketers Association of Nigeria confirmed the registration, paving the way for the distribution of fuel once commercial terms are finalized.
The Independent Petroleum Marketers Association of Nigeria is also set to discuss product loading terms with the refinery, while the Petroleum Products Retail Outlets Owners Association of Nigeria engages in discussions with PETROAN for product supply.
As members of MOMAN, a group of 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 their registration with the plant. The Dangote Petroleum Refinery recently announced the commencement of production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel). Aliko Dangote, the President of the Dangote Group, expressed gratitude to key stakeholders and announced plans to bring the products to the market within the month, subject to regulatory approvals.
Located in Lagos, the refinery has received six million barrels of crude oil to date and can load 2,900 trucks a day at its gantries. The products adhere to Euro V specifications, and the facility, covering approximately 2,635 hectares, is a subsidiary of Dangote Industries Limited. Major marketers, having registered with the refinery, are poised to buy and distribute its products. The commencement of production at the refinery is seen as a crucial step towards Nigeria’s energy independence and a potential reduction in fuel imports.
Clement Isong, the Executive Secretary/Chief Executive Officer of MOMAN, confirmed the registration of major marketers, highlighting their readiness to buy and sell Dangote’s products. He emphasized that commercial terms would be agreed upon, paving the way for members to purchase products for their filling stations. The refinery’s operations are expected to influence the cost of fuel, with the international price of crude oil playing a crucial role in determining pricing.
While specific reductions in fuel prices remain uncertain, industry observers anticipate positive impacts on pricing due to the domestic sourcing of crude oil. The refinery’s commencement of operations is seen as a game-changer for Nigeria, potentially leading to increased competition, job creation, and reduced dependence on fuel imports. Stakeholders express optimism about the refinery’s ability to meet expectations, reduce current hardships, and contribute to the development of the country’s petroleum sector. Efforts to obtain comments from the Dangote Group were unsuccessful as of the time of reporting.
Source: Punch Newspaper