Dangote Refinery Begins Petrol Production, Marketers Register to Lift Product at Reduced Price

Dangote Refinery Begins Petrol Production, Marketers Register to Lift Product at Reduced Price

  • Petroleum marketers have started registering to lift petrol from the Dangote refinery ahead of production
  • The refinery promised that it would begin petrol production in June, which might end petrol import in Nigeria
  • The marketers disclosed that they have begun intense negotiations with the Dangote refinery for price cuts

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Petroleum marketers have begun registering with the company to begin product loading ahead of the planned petrol production from the Dangote refinery.

The marketers are reportedly registering as individual business owners and applying to get a direct fuel supply from the 650,000 bpd-capacity refinery.

marketers register at refinery, IPMAN, Aliko Dangote
Chairman of the Dangote Group, Aliko Dangote to meet with marketers to crash petrol price Credit: Bloomberg/Contributor
Source: Facebook

This comes as the Independent Petroleum Marketers Association of Nigeria (IPMAN) disclosed that it would continue negotiations with the facility to get bulk supply for its members who may not afford large volumes of petrol.

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Dangote raises hopes of Nigerians

Aliko Dangote, the President of the Dangote Group, disclosed that the refinery will commence selling petrol in June to end importation into Nigeria.

Dangote spoke at the recent Africa CEO Forum Annual Summit in Rwanda and expressed optimism about the changing landscape of Africa’s energy sector.

Punch reports that the National Vice President of IPMAN, Hammed Fashola, expressed delight, saying that the refinery can meet Nigerians' needs regarding petroleum product supplies.

Fashola expressed the marketers' eagerness to begin lifting fuel from the facility, stating that they are in great anticipation.

He said the $21 billion facility would end petrol import and scarcity in Nigeria.

Marketers to meet Aliko Dangote for price cut

According to him, IPMAN has yet to agree with the Dangote refinery for petrol supply and asked the company to consider working with the association rather than with individuals.

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He said the association had finalised plans to meet Dangote for price-cut negotiations.

Fashola stressed that IPMAN would seek a discount during its meeting with Dangote, yielding faster results.

Legit.ng reported that the Dangote Group confirmed the registration of oil marketers for lifting diesel and aviation fuel from the facility.

The development led to a diesel price crash from N1,700 per litre to N1,200.

The facility also began exporting aviation fuel outside Nigeria's shores, and it stated that it would also begin exporting petrol when the product was ready.

Dangote, other refineries to crash petrol prices to N300/Litre

Legit.ng previously reported that Petrol prices should crash to about N300 per litre when mass production by the Dangote Petroleum Refinery and other refineries begins production.

Refinery owners, under the aegis of the Crude Oil Refinery Owners Association of Nigeria (CORAN), explained that providing enough crude oil to local refiners would crash the price of petrol, stating that foreign refineries were cheating Nigeria.

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CORAN stated that, like diesel prices, which sold for N1,700 before Dangote began production but later crashed to N1,200, the cost of petrol will crash when mass production begins.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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