- Local oil marketers set the price at 1,225 naira ($0.96) per litre for diesel after securing a bulk purchase agreement from Dangote Refinery, prior to adding their mark-up.
- The ships load a minimum of 26 million litres, though the refinery pushes for 37 million litres vessels, for ease of operations.
Dangote oil refinery began supplying the Nigerian domestic market with petroleum products such as diesel and aviation jet fuel on Tuesday, according to sources familiar with the matter.
Abubakar Maigandi, the head of the Independent Petroleum Marketers Association of Nigeria, told Reuters that local oil marketers set the price at 1,225 naira ($0.96) per litre for diesel after securing a bulk purchase agreement before adding their mark-up.
According to Maigandi, the association’s members control about 150,000 retail stations across Nigeria. The smaller Depots and Petroleum Products Marketers Association of Nigeria said its members sought letters of credit to buy petroleum products from Dangote.
The association’s executive secretary, Femi Adewole, said their members were discussing with banks and these talks have reached advanced stages. He added that they get letters of credit, they will begin lifting products.
An executive from the company and various fuel marketing organisations told Reuters that oil marketers load diesel from the refinery, an essential step in Nigeria’s drive for energy independence. Also, a group executive at Dangote, Devakumar Edwin, confirmed that the company has begun distributing diesel and jet fuel to the local market.
“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel. Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations,” Edwin added.
Dangote refinery is Africa’s largest refinery project with a capacity to process up to 650,000 barrels per day.