Dangote Refinery to Sell Fuel in Dollars? Marketers Speak as FG Begins Meeting to Set Pricing
- Oil marketers have disclosed that the Dangote refinery will not sell petroleum products from the refinery in dollars
- The development follows speculations that the refinery plans to sell refined products in US dollars
- Also, members of the regulatory agency, NMDPRA are reportedly meeting with the refinery management to set a pricing template
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Oil marketers clarified on Monday, January 22, 2024, that petroleum products from the Dangote refinery will be sold in naira and not in the US dollar as previously speculated.
The dealers in the downstream oil sector said that the registration process for marketers at the refinery was still ongoing.
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FG meets with Dangote refinery to set prices
According to reports, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) met with the refinery management to set the pricing template for products from the $20 billion refinery.
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The Dangote refinery announced on January 12, 2024, that it had commenced the production of diesel and aviation fuel.
Aliko Dangote, the president of the Dangote Group, said in a statement that the refinery started the production of diesel and aviation fuel, which will hit the market in January upon receiving regulatory approvals.
Dangote said:
“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.”
About seven major oil marketers in Nigeria had registered with the facility to lift and distribute refined petroleum products from the plant.
Marketers begin registration with the Dangote refinery
Punch reports that the seven major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.
Another report revealed that the facility will supply fuel to about 150,000 retailers operated by Independent Petroleum Marketers Association of Nigeria (IPMAN) members after a meeting between the refinery management and IPMAN executives.
One of Nigeria’s energy provers, Eterna Plc, has announced that it is now an authorized distributor of the new Dangote Petroleum Refinery’s products in the domestic market, Legit.ng reported
The company disclosed this in a statement issued on Wednesday, January 17, 2024.
Per the statement signed by the company’s secretary, Mandela Golkus, Eterna’s appointment as a distributor of Dangote’s domestic products in Nigeria reinforces its commitment to improving product supply with the assurance of significant investment in trucking via truck acquisition and strategic partnership with third-party transport.
Dangote makes $2 billion in 17 days after refinery commences production
Legit.ng reported that Dangote investors were not the only ones who gained following the incredible performance of Dangote stocks on the Nigerian Exchange Limited.
The president of Dangote Industries, Aliko Dangote, also experienced a surge in his net worth, which grew by $2 billion in 17 days.
This came a few days after the $20 billion Dangote Refinery announced the commencement of diesel and aviation fuel production.
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Source: Legit.ng
