Dangote Refinery stirs domestic market with diesel, jet fuel supply
Petroleum products marketer in Nigeria are excited as the domestic producer, Dangote Refinery, began supply of diesel and aviation jet fuel, according to sources with the industry knowledge.
The head, Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, told Reuters on Tuesday that local oil marketers set the price at 1,225 naira ($0.96) per litre for diesel after securing a bulk purchase agreement, prior to adding their mark-up.
The association’s members control about 150,000 retail stations across Nigeria, Maigandi said.
READ ALSO: Dangote, 106 others enjoy tax waiver over N2.5trn Investments
The smaller Depots and Petroleum Products Marketers Association of Nigeria said its members were seeking letters of credit to buy petroleum products from Dangote.
Our members are discussing with banks and these talks have reached advanced stages, when we have our letters of credit, we will begin lifting products,” Femi Adewole, the association’s executive secretary said.
An executive from the company and various fuel marketing organizations told Reuters that oil marketers load diesel from the refinery, an important step in Nigeria’s drive for energy independence.
In addition, Devakumar Edwin, a group executive at Dangote, confirmed that the company has begun distributing diesel and jet fuel to the local market.
“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 told Reuters.
