Less than three months after Dangote Oil Refinery began its product rollout, independent dealers have already bottled and distributed over 25 million litres of diesel.
It was reported on Saturday that the refinery was still registering oil traders. This ongoing registration is in preparation for the facility’s planned launch of Premium Motor Spirit (PMS), also known as gasoline, in July. Dealers are gearing up to start distributing PMS from the refinery as soon as it is available.
The Independent Petroleum Marketers Association of Nigeria, the Major Petroleum Marketers Association of Nigeria, and the Petroleum Products Retail Shop Owners Association of Nigeria all confirmed that their members have registered with the Lagos refinery.
They also confirmed that the continuous take-off of diesel from the Dangote Refinery has contributed to the stabilization of diesel prices and ensured steady supply since the plant began production in March this year.
Since the Dangote Refinery began supplying diesel to the Nigerian market in late March 2024, the price of diesel has fallen from about N1,800 to N1,200 per litre, and the availability of the product has remained consistent across the country.
National Publicity Head of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Ukadike Chinedu, reported that IPMAN members have distributed over 25 million litres of Automotive Gas Oil (AGO) from the Dangote Refinery across the country.
“Independent marketers are signing up with Dangote and many of us get a lot of our products from Dangote depots, I know a number of marketers who are signed up with Dangote Refinery.”
“I can also confirm that independent traders have loaded over 25 million litres of diesel since the refinery began selling diesel domestically to operators in Nigeria’s downstream oil sector,” Ukadike said.
On April 2, 2024, oil traders announced that Dangote Refinery had begun selling diesel in the local market. Both dealers and plant representatives confirmed the news, saying diesel sales from the refinery began the previous week.
“They started supplying diesel to dealers last week and will be selling aviation fuel shortly. Some of my members have already confirmed purchases,” IPMAN National Chairman Abubakar Maigandi said in an interview.
Maigandi also noted that Dangote’s entry into the diesel market would bring down prices, noting that diesel prices had risen to about N1,700 per litre at the time. “The price of diesel will come down because of the product of the Dangote refinery. It is already sinking in Lagos,” Maigandi explained.
Dangote refinery officials have not commented on the ongoing issues at the plant. However, traders report that market participants are eagerly awaiting the release of gasoline from the refinery.
They believe that this measure could bring down the price of petrol significantly. “Traders are loading more product from the factory as the Group Chairman said the PMS is expected to be launched in July and we cannot wait for the start of delivery of the PMS from the refinery,” Ukadike explained.
“I must say it is good to know that the completion of the PMS for deliveries from this facility is nearing because diesel prices have not crossed N1,200 per litre since Dangote diesel hit the market. Even in the far northern states, independent dealers are selling diesel at the pump for N1,200 per litre.”
“That means that with Dangote’s arrival, the sharp rise in diesel prices has slowed down. Now, we are expecting a PMS by July, which will halt the importation of petroleum products,” he added.
