Dangote Refinery Exports Fuel to US, More Countries Ready to Buy
- Dangote Refinery has begun the sale of petroleum products to more international markets, and this time, it is the US
- The Dangote Group has recently announced that it will temporarily stop the sale of petrol in Nigeria
- There are more countries ready to buy from Dangote refinery, which is one of the largest in the world
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Dangote refinery has exported 1.7 million barrels of jet fuel to the United States.
According to ship-tracking service Kpler, this shipment arrived at the United States ports on Monday.
Source: Getty Images
Further data from Kpler indicates that another vessel, the Hafnia Andromeda, is scheduled to dock at the Everglades terminal by March 29, carrying approximately 348,000 barrels of jet fuel.
These exports highlight the refinery's expanding footprint in North America and Europe.
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Dangote Refinery supplies jet fuel to US as Nigerians await return to petrol sales in naira
Dangote refinery to export more
Reuters reports that Dangote oil refinery has also issued a tender on Tuesday, March 25, to sell 128,000 metric tons of residual fuel oil in April.
The report added that Dangote refinery will close the tender on Wednesday at 1200 GMT, as it seeks buyers for 88,000 tons of low sulphur straight run fuel oil and 40,000 tons of slurry oil for loading on April 10-12.
Dangote halts petrol sale in naira
Dangote's export comes amidst ongoing challenges in Nigeria's domestic fuel market, including disruptions following the cancellation of the naira-for-crude deal with the refinery.
This decision has affected the Nigerian markets, triggering concerns among marketers and consumers alike.
In response to the naira-for-crude impasse, the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Nigerian currency.
The refinery cited the necessity to align its sales proceeds with its crude oil purchase obligations, currently denominated in US Dollars.
Source: Getty Images
Dangote said:
"We wish to inform you that, Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.
To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency."
Since the announcement, the local market has seen an increase in petrol prices at private depots in Lagos, rising to around N900 per litre from levels below N850 per litre previously.
New pump prices expected as cost of fuel increases
Earlier, Legit.ng reported that petroleum marketers said that petrol prices at the pump in Nigeria could rise to at least N930 per litre nationwide.
The prediction followed another increase in the ex-depot price of petroleum products by private depots.
Companies like Pinnacle, AIPEC, Rainoil Lagos, and WOSBAB reported this latest price adjustment.
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Source: Legit.ng
