Dangote Refinery Distributes 25 Million Litres of Diesel, Stabilizes Price

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Independent marketers have distributed over 25 million litres of Automotive Gas Oil (AGO), commonly known as diesel, produced by the Dangote Petroleum Refinery within three months of the plant beginning its operations.

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On Saturday, it was revealed that the registration of oil marketers with the $20 billion refinery is ongoing, as more dealers prepare for the refinery’s anticipated release of Premium Motor Spirit (PMS), also known as petrol, into the domestic market in July. Marketers are ready to commence PMS distribution from the plant.

The Independent Petroleum Marketers Association of Nigeria (IPMAN), Major Energies Marketers Association of Nigeria (MEMAN), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) confirmed that their members are registering with the Lagos-based refinery. They also verified the continuous lifting of diesel from the facility, which has stabilized prices and ensured a steady supply since production began in March 2024.

The price of diesel dropped from approximately N1,800/litre to N1,200/litre following the release of the product into the Nigerian market by the Dangote refinery in late March 2024. Since then, the availability of the product has been consistent nationwide.

Commenting on the stability of diesel prices and its availability, as well as the registration of marketers with the refinery, the National Public Relations Officer of IPMAN, Chief Ukadike Chinedu, told our correspondent that over 25 million litres of AGO from the plant had been distributed by IPMAN members across the country.

“Independent marketers are registering with Dangote, and many of us have lifted a lot of product from Dangote’s depot. I’m aware of many marketers who have registered with the Dangote refinery. I can also confirm that independent marketers have loaded over 25 million litres of diesel since the refinery started the domestic sale of diesel to downstream oil sector operators in Nigeria,” Ukadike stated.

On April 2, 2024, oil marketers revealed that the Dangote refinery had commenced the sale of diesel to the domestic market. Dealers and officials of the plant also confirmed the development at the time, noting that the plant had started diesel sales the previous week.

“They started pumping out diesel to marketers last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making a purchase,” said the National President of IPMAN, Abubakar Maigandi, at the time. Maigandi also stated that the move by Dangote would lead to a reduction in diesel prices, which had risen to about N1,700/litre at the time.

“The price of diesel is going to fall because of the release of products from Dangote Refinery. In fact, it is already coming down in Lagos,” Maigandi had stated.

This reduction materialized after the Dangote refinery lowered the price of diesel to N1,200/litre. Although officials of the Dangote refinery have remained silent on matters concerning the plant, dealers stated on Saturday that marketers are eagerly awaiting the release of petrol from the plant, hoping that this will reduce the cost of the commodity.

“Marketers are loading more products from the plant and are eager to begin the lifting of PMS from the refinery, since the Chairman of the group has said that PMS should hit the market in July,” Ukadike stated.

He added, “It is good to know that PMS is being finalized for release from that plant. Since Dangote diesel entered the market, the price of diesel has not exceeded N1,200/litre. Independent marketers even in far northern states are selling diesel at N1,200/litre at the pumps. So, the introduction of Dangote diesel has slowed down the skyrocketing price of diesel. Now we are expecting PMS by July, which will end the importation of petroleum products.”

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