Good News as Dangote, Ardova Signs Agreement for Bulk Purchase of Fuel

• Dangote Refinery and Ardova Plc, have reached an agreement on a bulk purchase framework
• The deal is expected to guarantee supply security at affordable prices for its customers
• As a result of the partnership, Ardova Plc will be able to purchase the refinery's entire range of petroleum products

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Ardova Plc, one of Nigeria’s major integrated downstream oil and gas businesses has agreed to a bulk purchase framework with Dangote Refinery.

In a statement on Monday, the Head of Brands and Corporate Communications, Ardova Plc, Grant Onome, noted that the development will guarantee supply security at affordable prices for its customers.

The statement claims that as a result of the partnership, Ardova Plc will be able to purchase the refinery's entire range of petroleum products.

Although Ardova Plc has been a major offtaker from the refinery since its founding, Onome stated that the new structure will formalize a stronger partnership between the two businesses to further improve the developing competitive environment in the downstream oil and gas sector of the nation.

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“This framework is in line with President Tinubu’s drive for competition and improved efficiency in the industry, and Ardova Plc will deliver products at competitive prices nationwide,” the statement read in part.

This comes after Dangote Refinery, Port Harcourt Refinery, and Warri Refinery recently started refining crude oil.

Recently, Dangote Refinery and MRS teamed up to offer Premium Motor Spirit or gasoline at N935 a liter across the country at its retail locations.

Following a price cut by the Nigerian National Petroleum Company Limited below N1,000 per litre, the development occurred.

Speaking about the deal, Aliko Dangote said,

“To provide succour to Nigerians, Dangote recently reduced the price of Premium Motor Spirit (PMS) from N970 to N899.50 at its Refinery loading gantry and provided generous credit terms to marketers.

“To ensure that this price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre” the statement added.

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In the statement, Dangote called on other oil marketers such as the NNPC Retail and all other marketers, to work with the refinery to ensure that Nigerians enjoy high-quality petrol at discounted prices.

According to him,

“The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high-quality petrol at cheaper prices.

“Our aim is for all Nigerians to have ready access to high-quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.”

Marketers send message to Dangote Refinery

Legit.ng reported that the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has praised Dangote Refinery's management for bringing the price of its gasoline down to N899.50K per litre.

ChannelsTV reported that PETROAN spokesperson Joseph Obele said in a statement on Thursday that the action is a huge relief for drivers and Nigerians in general.

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New petrol pricing by NNPCL and Dangote offers Nigerians fresh hope

According to PETROAN president, Billy Gillis-Harry, Dangote Refinery's price cut would lessen Nigerians' suffering and lower living expenses over the holiday season.

Source: Legit.ng