Following the commodity’s sale by the Dangote Petroleum Refinery, the pump price of automotive gas oil, often known as diesel, has decreased from approximately N1,700/litre, which it was selling for, a few weeks ago, to approximately N1,350/litre in some locations nationwide.
On Tuesday, information surfaced that the $20 billion refinery began supplying fuel to the home market last Wednesday.
Since the plant started selling diesel, it has sold a minimum of one million liters to every registered oil marketer that received the fuel.
According to representatives of the multibillion-dollar factory and oil dealers, the product was sold to marketers for N1,225 to N1,300 per litre, depending on the quantity purchased.
This was announced concurrently with information that the refinery planned to begin supplying Premium Motor Spirit to the domestic market in May of this year.
“Starting last week, they have been supplying marketers with diesel. They also pledged to start selling aviation fuel shortly. Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria, told one of our journalists, “After making the purchase, some of my members confirmed this to me.”
“Well, some of our marketers have started receiving the product, but as an association, we haven’t received it yet. We want to know the real price at which it will be sold to us when we make larger purchases,” he continued. Nevertheless, because some of our marketers have begun to make purchases, they have begun to offer diesel.
1,225 N/L
“They are offering a minimum volume of one million liters every marketer, and their prices are N1,225 per litre. Additionally, they promised us that while they will produce more goods, they are starting with this one (diesel) for the time being. Therefore, we anticipate that PMS will be released at any time.
Given that the price of fuel recently reached a high of over N1,700 per litre, Maigandi predicted that Dangote’s action will undoubtedly cause the commodity to plummet.
“Due to the Dangote refinery’s product discharge, the price of diesel would decrease. In Lagos, it is actually already starting to collapse,” Maigandi said.
Dr. Ralph Arokoyo, the CEO of AF Ralph Oil and Gas Ventures and another oil marketer, affirmed that the refinery had begun selling diesel to dealers, adding that the facility had begun distributing the fuel last Wednesday.
In response to a question about whether the Dangote refinery had begun providing fuel to the market, Arokoyo said, “Yes, they have.” Since last Wednesday, when they began selling diesel, they have done business with numerous marketers, including those who are members of MEMAN (the Major Energy Marketers Association of Nigeria) and IPMAN, in addition to other privately registered independent dealers.
Price reductions
Arokoyo responded, “One million litres is the minimum and the rate is okay considering what other major tank farms are selling, which is why people are flocking to the refinery now,” when questioned about the minimum amount being sold to dealers and the price at which it is sold.
“The price varies based on the volume you are purchasing, from N1,250 to N1,300 per litre. For the past few weeks, the price of diesel has been ranging between N1,600 and N1,700 per liter, thus this is wonderful news for Nigerians.
However, because of the refinery’s products and the fact that they have been shipped out since last Wednesday, prices are starting to decline in various parts of the federation. AGO (diesel) is currently available at some stations at N1,400 per litre.
“I want to believe that in a few weeks, we should see more reduction in the price of the product as more products from the plant hit the market and spread very well across the country. Some are even doing N1,350/litre now.”
Arokoyo responded in the affirmative when asked if the corporation told dealers when it would begin distributing gasoline onto the market.
“They (the Dangote refinery) stated that the petroleum will be accessible from now until May, which is the next month. Because PMS is mostly used by Nigerians, we are excited about this,” the oil marketer said.
Senior Dangote refinery officials verified the diesel sales to marketers, citing an impending market release of Premium Motor Spirit, also known as gasoline.
“The product, diesel, is widely available, and marketers can easily obtain it.” Since last week, marketers have been able to purchase the goods, and sales have improved.
Due to a lack of authorization to talk publicly on the subject, the official spoke under condition of anonymity. “The price of the product in various locations of the country will come down, and it is already coming down in many parts of Lagos since we started releasing products to marketers,” the person said.
After being formally opened by former President Muhammadu Buhari in May of last year, the Dangote refinery has encountered numerous obstacles in its efforts to supply refined products to the market.
Remember that on February 8, 2024, The PUNCH revealed that there were hints that Dangote Petrochemical Refinery’s plan to deliver diesel and aviation fuel (Jet A1) for sale in Nigerian markets in January had been delayed by unfinished business with regulatory approvals.
The largest refinery in Africa was still struggling to get through the several levels of regulatory permits, weeks after the management of the facility set a deadline of January 31 for it to start selling its petroleum product on the local market.
According to the statement, the refinery started producing refined petroleum products at the large plant before the development happened.
The Dangote refinery declared on January 12, 2024, that it has started producing aviation fuel, also known as JetA1, and automotive gas oil, also known as diesel.
In a statement released at the time by his company, Aliko Dangote praised President Bola Tinubu for his encouragement, assistance, and wise counsel in bringing the project to fruition.
As he disclosed that the facility would begin pumping diesel and aviation fuel in January, subject to regulatory approvals, Dangote also thanked Nigerians, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, NMDPRA, and Nigerians in general for their support and belief in the historic project.
“We are grateful to President Bola Tinubu for his backing and for realizing our dream,” he declared. His innovative leadership and quick attention to detail made this production conceivable as it is seen now.
His intervention at different points in time removed all obstacles, hastening the project’s actualization. We also appreciate the help from NNPC, NUPRC, and NMDPRA. These organizations have shown to be our trusted allies on this momentous expedition.
“We also acknowledge the belief and support that Nigerians have shown for this effort. We have begun producing aviation gasoline and diesel, and if we get regulatory approval, the products should be available on the market this month.
Built on a peninsula on the outskirts of Lagos, the commercial center of Africa, the refinery has a nameplate capacity of 650,000 barrels per day, making it the largest on the continent.