Joy as Dangote Refinery rolls out for Nigeria's diessel marketers

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Indications are that the Dangote Refinery has rolled out diesel to marketers in Nigeria at reduced cost through land and sea.

Indeed, the company posted trucks loaded with the product leaving the facility in Lekki, Lagos, to various destinations.

Oil marketers in Nigeria had engaged the refinery for a price reduction due to several factors, including Naira’s gain against the dollar.

The Dangote Refinery was said to have rolled out diesel to marketers at its Lekki, Lagos facility on Monday, April 15, 2024.

In a video posted on social media, the refinery said that it had commenced the distribution of diesel to registered marketers via land and sea, marking a significant development for Nigeria’s fuel supply and the energy sector.

According to the company, “The Dangote Petroleum Refinery in Lekki, Nigeria, has commenced the rollout of diesel via both land and sea, marking a significant development for the country’s fuel supply and energy sector.

“This initiative is expected to improve diesel prices and supply in Nigeria, reducing the nation’s exposure to crude oil prices and increasing arbitrage opportunities.

“Marketers have already begun picking up diesel from the refinery, with various posts and videos showcasing diesel loading onto truck tankers and vessels at the refinery.

“The rollout has been met with optimism and celebration, seen as a positive step for Nigeria’s energy sector, despite initial scepticism.

Marketers had engaged the refinery for a price slash, currently pegged at N1,250 and N1,300 per litre depending on the purchase volume.

According to reports, IPMAN is championing the pricing challenge. They point out that imported diesel currently costs N1,250 per litre in Nigeria due to the resurgence of the naira.

The marketers said the commodity’s price reduction will benefit Nigerians in several ways, such as low transportation costs, reduced profiteering, and strengthening the naira.

IPMAN reportedly plans to meet with the Dangote refinery’s management next week to discuss the pricing issue.

The oil marketers will also seek intervention from the Nigerian government.

Earlier reports had indicated that the Dangote Petroleum Refinery in Lagos would soon begin pumping petrol to the domestic market, barring unforeseen circumstances.

The refinery and oil marketers have increased efforts to make final decisions on pricing and delivery of petrol to filling stations nationwide. The 650,000 bpd-capacity refinery plans to produce and distribute petrol by May 2024.