The seven major oil marketers in Nigeria have officially registered with the Dangote Petroleum Refinery for the procurement and distribution of refined petroleum products from the $20 billion facility. Members of the Major Oil Marketers Association of Nigeria (MOMAN) confirmed this development on Sunday, stating that they are ready to initiate fuel distribution from the refinery pending the finalization of commercial terms.
Simultaneously, the Independent Petroleum Marketers Association of Nigeria (IPMAN) announced plans to engage in discussions with the Dangote refinery management later this week to establish terms for product loading. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) also conveyed ongoing engagements with the refinery for product supply.
The major oil marketers who are part of MOMAN and have registered with the Dangote refinery include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail.
The Dangote Petroleum Refinery recently initiated production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel), announcing a significant milestone. Aliko Dangote, the President of the Dangote Group, expressed gratitude to various stakeholders, including President Bola Tinubu and regulatory bodies, for their support.
The refinery, situated in Lagos, has received six million barrels of crude oil to date. It commenced crude oil deliveries on December 12, 2023, and the sixth cargo was received on January 8, 2024. Boasting the capacity to load 2,900 trucks per day, the refinery’s products adhere to Euro V specifications.
Clement Isong, the Executive Secretary/Chief Executive Officer of MOMAN, confirmed that major marketers have registered with Dangote for product procurement. He highlighted that discussions on commercial terms will precede the commencement of purchases.
While the Dangote refinery marks a significant development for Nigeria, uncertainties remain about the pricing policy. Isong noted that the market price, influenced by factors such as crude oil costs, capital expenses, and loan repayment, will play a crucial role in determining fuel prices from the refinery.
