Petrol Price Set to Crash as Marketers Partner With Dangote to Get Discounted Fuel
- To ensure a steady supply of petroleum products at affordable prices, more fuel marketers are collaborating with the Dangote Refinery
- Many petroleum marketers are now thinking about partnering with Dangote Refinery in an attempt to take control of the market
- Among the companies that have successfully negotiated an agreement with Dangote Refinery are Ardova Plc and Heyden Petroleum
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
More fuel marketers are starting to partner with the Dangote Refinery to guarantee Nigerians a consistent supply of petroleum products at reasonable costs.
Source: Getty Images
A few weeks following the strategic partnership with MRS Oil Nigeria Plc, which allowed the company to sell Premium Motor Spirit (PMS), commonly known as fuel, at a lower price than competitors, more petroleum marketers have continued to enter into agreements with the refining giant in an attempt to increase sales and drive down prices.
According to information obtained by The Guardian, numerous petroleum marketers are currently considering signing a strategic agreement with Dangote Refinery in an effort to gain market dominance.
Based on the report, Ardova Plc is among the businesses that have been successful in negotiating a deal with Dangote Refinery, and Heyden Petroleum has done the same.
According to Ardova Plc, the Dangote Petroleum Refinery and the company have signed a bulk purchase deal.
Why Ardova signed deal with Dangote
The company claimed that the strategic action was intended to guarantee a consistent supply of petroleum products at reasonable costs to further stabilise the country's gasoline market and improve consumers' energy security.
Grant Onome, Head of Brands and Corporate Communications at Ardova Plc, said in a statement that his firm and Dangote Refinery have reached an agreement on a bulk purchase framework to provide supply security at competitive pricing for its clients.
Onome said:
“This framework will see Ardova Plc offtake a full slate of petroleum products from the refinery. While Ardova Plc has been a significant off taker from the refinery since its inception, this new framework will institutionalise a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry in the country.
“This framework is in line with President Tinubu’s drive for competition and improved efficiency in the industry and will see Ardova Plc deliver products at competitive prices nationwide,” he stated.
During the Yuletide season, many Nigerians took advantage of lower fuel prices, with PMS selling for as little as N940 and N950 per litre at certain gas stations.
This change followed the MRS agreement, which addressed the long-standing problem of price differences across states by reducing fuel rates to N935 per litre across all of its stations nationally.
Betty Abraham said,
"Things moved from bad to worse in the past year. I can only hope it gets better so that we can start buying petrol at for cheap rate again."
Dangote Refinery partners with oil companies
Legit.ng reported that Dangote Petroleum Refinery, Heyden Petroleum and Ardova Plc partnered to guarantee Nigeria's access to reasonably priced petrol.
According to a statement released on Thursday, the businesses signed a bulk purchase arrangement with the refinery after being encouraged by the financial relief offered by President Bola Tinubu's crude-for-naira swap plan.
The move was said to be in line with the precedent set by MRS Oil Nigeria Plc, which had already signed a comparable contract with Dangote Refinery.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
