Dangote Refinery
Dangote Refinery injects 25m litres of diesel in three months, stabilizes market
Independent marketers have confirmed distributing over 25 million litres of Automotive Gas Oil (AGO), commonly known as diesel, from the Dangote Petroleum Refinery in three months.
Consequently, the market is said to have stabilized diesel prices and ensuring a steady supply across Nigeria.
Indeed, Dangote Refinery began production and distribution of diesel to the Nigerian market in March 2024, reckoned to have made appreciable and significant impact in the market.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), Major Energy Marketers Association of Nigeria (MEMAN), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) said registration of their members with the Lagos-based refinery.
According to them, the registration has facilitated the continued lifting of diesel from the facility, leading to a substantial price drop and stabilizing the commodity’s availability.
Since Dangote’s diesel began reaching the market, prices have plummeted from approximately N1,800 per litre to N1,200 per litre.
Chief Ukadike Chinedu, National Public Relations Officer of IPMAN, noted that this significant price reduction has ensured a reliable supply of diesel across the country.
Chinedu confirmed that independent marketers nationwide have distributed over 25 million litres of diesel.
The initial release of diesel by Dangote Refinery was on April 2, 2024, with oil marketers confirming the start of domestic sales.
The move was anticipated to lower diesel prices significantly, a prediction that proved accurate as prices decreased substantially in the weeks following the release.
Abubakar Maigandi, National President of IPMAN, highlighted that the entrance of Dangote Refinery into the market has prevented diesel prices from exceeding N1,200 per litre.
”The stabilization in diesel prices is a direct result of the increased supply from Dangote Refinery,” he said.
Looking ahead, marketers are eagerly awaiting the release of PMS from the refinery, which is expected to commence in July.
”This release is anticipated to further stabilize fuel prices and potentially end the importation of petroleum products into Nigeria.
”With the refinery set to begin releasing PMS soon, there is widespread optimism that this will bring much-needed relief to the Nigerian fuel market, echoing the positive impact seen with diesel,” Maigandi added.
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