Oil marketers in Nigeria have commenced the procurement of diesel and aviation fuel from the recently inaugurated Dangote Refinery, marking a significant shift in the country’s energy landscape.
Mr. Clement Isong, the Chief Executive Officer of the Major Energy Marketers Association of Nigeria (MEMAN), disclosed in a telephone interview with that members of the association have begun lifting these essential fuels from the Dangote Refinery, a development anticipated to positively influence the domestic market.
“Our members have started lifting diesel and aviation fuel from the Dangote Refinery. It is a good development that will impact the domestic market,” Isong affirmed.
Similarly, Femi Adewole, the Executive Secretary of the Smaller Depots and Petroleum Products Marketers Association of Nigeria, revealed that discussions with financial institutions have progressed significantly.
He expressed optimism that once the necessary financial arrangements are finalized, their members will commence lifting products from the refinery.
“While 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,” Adewole stated.
Although efforts to reach Alhaji Abubakar Maigandi Shettima-Garima, the President of the Independent Petroleum Marketers Association of Nigeria, were unsuccessful, another member of the association confirmed that independent marketers have indeed commenced lifting diesel from the Dangote Refinery.
This increased supply is expected to have a beneficial impact on the domestic market.
Dangote’s Group Executive, Devakumar Edwin, overseeing the refinery’s development, provided insights into the ongoing operations.
He remarked, “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.”
Edwin further elaborated on the logistics, mentioning that ships typically load a minimum of 26 million liters, with efforts to increase vessel capacity to 37 million liters for operational efficiency.
Vanguard’s investigations revealed that local oil marketers had previously agreed on a purchase price of 1,225 naira ($0.96) per liter of diesel under a bulk purchase agreement with Dangote Refinery.
These marketers are expected to adjust prices to accommodate logistics and other associated costs, reflecting the dynamics of the market.
