In a significant milestone towards nationwide distribution, seven major oil marketing companies have been chosen to sell fuel produced by the groundbreaking $20 billion Dangote Refinery. The selection of industry giants, including Conoil Plc, 11 Plc, Total Nigeria Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, and NNPC Retail, marks a pivotal step as the facility gears up for the production of diesel and aviation fuel.
Stakeholders are eagerly anticipating the commencement of distribution as commercial terms are finalized. Members of the Major Oil Marketers Association of Nigeria (MOMAN) have expressed their preparedness to kickstart distribution once the terms are agreed upon.
Clement Isong, CEO of MOMAN, confirmed that all members have registered with Dangote, expressing confidence in the prompt availability of products in their stations. “We have all registered with Dangote so that we can buy and sell. All my members are registered with Dangote. Whenever the product is ready and starts coming out, you will see it in our filling stations,” Isong affirmed in a recent BusinessDay report.
Aliko Dangote, President of the Dangote Group, expressed gratitude to President Bola Tinubu and various regulatory bodies for their support, marking a crucial moment for the refinery. Dangote emphasized the significance of the project for the country, stating, “This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game-changer for our country, and I am very fulfilled with the actualization of this project.”
Situated in Lagos, the refinery has received six million barrels of crude oil, overcoming earlier supply challenges and paving the way for production. With the capability to load 2,900 trucks daily while adhering to stringent international standards, the facility is poised to make a substantial impact on the nation’s fuel distribution landscape.
The Independent Petroleum Marketers Association Of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are set to meet with Dangote’s management, highlighting widespread industry interest in the refinery.
While expectations rise for a potential reduction in fuel prices, industry leaders caution that various factors could influence pricing, urging a sense of cautious optimism. Billy Gillis-Harry of PETROAN emphasized the removal of logistics costs as a positive aspect but advised waiting for specific details after product loading discussions. He stated, “It is difficult to give an exact figure because so many variables are at play… we should still expect a reprieve, some advantages should come to us. So that is my thinking.”
