Dangote Refinery Crashes Diesel Price as Marketers Queue to Lift Product, Set to Begin Petrol Supply

• The Dangote Refinery in Lagos has reportedly started the sale of diesel to marketers across Nigeria
• Petroleum product marketers said the refinery has crashed the price of diesel from N1,700 per litre to N1,225 per litre
• Also, the facility said that it will begin the supply of petrol to the local market in May 2024 to reduce the importation of the product by Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The pump price of diesel has dropped from N1,700 per litre, which it sold a few weeks ago, to about N1,350 per litre in some locations in Nigeria following the product's sale by Dangote Petroleum Refinery.

Findings show that the $20 billion, 650,000 bpd-capacity refinery began pumping diesel to the domestic market on Wednesday, March 27, 2023.

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Dangote sells one million litres at N1,225/litre

The company reportedly sold a minimum of one million litres to each registered marketer from the refinery since it began the sale of diesel.

Punch reports that officials of the refinery and oil dealers confirmed that the company dispensed the product to marketers between N1,225 and N1,300 per litre, depending on purchase volume.

According to the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, the refinery began the sale of the product in the last week of March.

Maigandi said that some marketers began getting the product, but IPMAN members have yet to lift the product from the facility.

He reportedly confirmed that the company is selling the product at N1,225 per litre, and the minimum volume is about one million per marketer, stating that the company said it will release more volume soon.

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He stated the move would crash diesel prices further as the product sold as high as N1,700 per litre in February 2024.

The refinery will begin the petrol supply

The development comes as the refinery said it would begin the supply of Premium Motor Spirit, popularly called petrol, from May 2024.

A Bloomberg report said Africa’s biggest refinery will soon supply petrol to the domestic market to reduce Nigeria’s dependence on imported petroleum products.

The facility exported its first product of 65,000 metric tons of low-sulfur straight-run fuel and oil and about 60,000 tons of naphtha.

The refinery operates at a processing rate of 350,000 barrels daily, with plans to raise it to a maximum capacity.

FG orders crude oil supply to Dangote and others

Legit.ng earlier reported that the Dangote refinery and other regional crude oil refining facilities in Nigeria, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), have been complaining about a shortage of feedstock.

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As a result, the NUPRC chief executive, Gbenga Komolafe, instructed the commission's enforcement committee to create a model for smoothly executing the Domestic Crude Oil Supply Obligation.

Komolafe issued the order during a meeting to review the DCSO as stated in Section 109(2) of the Petroleum Industry Act 2021.

According to a statement, this addresses regulating and enforcing the crude supply.

The NUPRC boss underlined the government's commitment to making Nigeria a net exporter of refined petroleum products.

Dangote refinery gets new supply of 1m barrels of crude

Legit.ng previously reported that with a fresh supply of N1 million barrels of crude oil delivered on Thursday, December 28, Dangote Refinery had increased its crude oil to N3 million this month.

Dangote Refinery received the supply from Shell International Trading and Shipping Company Limited (STASCO) as a fourth shipment of crude is on the way.

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The company plans to start producing diesel and aviation fuel by mid-January 2024, after which it will begin producing Premium Motor Spirit.

Source: Legit.ng