Dangote Crashes Diesel Price, Refinery Rolls Out Petrol In May

FUNSHO AROGUNDADE

Dangote Refinery is set to supply Premium Motor Spirit (PMS) popularly known as petrol to marketers next month, May 2024, according to sources familiar with the matter.

The largest refinery in Africa began the distribution of diesel and aviation jet fuel to domestic marketers at 1,225/ltr, a development that might reduce the retail price of both products in the coming months.

According to Bloomberg report, the new mega-refinery will begin supply of PMS in the domestic market in May, significantly reducing Nigeria’s dependence on imported petroleum products.

The refinery, which began its operations in January, successfully made its first export last month, shipping 65,000 metric tons of low-sulfur straight run fuel oil and approximately 60,000 tons of naphtha to Asia and Houston, United States.

The facility is operating at an initial processing rate of 350,000 barrels per day, with plans to increase towards its maximum capacity.

According to Abubakar Maigandi, the leader of the Independent Petroleum Marketers Association of Nigeria, said the association have started transporting diesel from the refinery and will make payments in naira.

“We are still finalizing the details of the volumes that we are going to take from Dangote as an association and we also haven’t finalized on the price,” he said.

The association members control about 150,000 retail stations across Nigeria.

Devakumar Edwin, an executive director at Dangote Group, affirmed that the refinery has initiated the local distribution of diesel and jet fuel.

“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel.

“Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations,” Edwin said.

The Dangote Refinery represents Africa’s largest refinery project, completed after many postponements and financed by Aliko Dangote, Africa’s wealthiest individual, with an investment of $20 billion.

The refinery, with a processing potential of 650,000 barrels per day, is poised to be the biggest in both Africa and Europe upon achieving full operational status, which is expected either this year or the following.

The Dangote refinery is expected to significantly reduce Nigeria’s dependence on imported petroleum products.