Oil Giants Secure Approval To Sell Dangote Refinery Fuel, Boosting Industry Momentum

No fewer than seven major oil marketing companies have been selected to sell fuel produced by the $20 billion Dangote Refinery, marking a significant step towards its nationwide distribution.

The selection of the oil marketing giants—Conoil Plc, 11 Plc, Total Nigeria Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, and NNPC Retail—drives up momentum among stakeholders as the facility gets ready to kick-start production of diesel and aviation fuel.

Members of the Major Oil Marketers Association of Nigeria (MOMAN) have expressed readiness to kickstart distribution once commercial terms are finalised.

Clement Isong, CEO of MOMAN, confirmed that all members have registered with Dangote, anticipating the prompt availability of products in their stations.

“We have all registered with Dangote so that we can buy and sell. All my members are registered with Dangote. Whenever the product is ready and starts coming out, you will see it in our filling stations,” Isong affirmed in a BusinessDay report.

Aliko Dangote, President of the Dangote Group, expressed gratitude to President Bola Tinubu and various regulatory bodies for their support, marking the refinery’s pivotal moment.

“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game-changer for our country, and I am very fulfilled with the actualization of this project,” Dangote stated.

The refinery, located in Lagos, has already received six million barrels of crude oil, paving the way for production after overcoming earlier supply challenges. It boasts the capability to load 2,900 trucks daily, adhering to stringent international standards.

The Independent Petroleum Marketers Association Of Nigeria (IPMAN) and
Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) are also set to meet with Dangote’s management, indicating widespread industry interest in the refinery.

While expectations run high for a potential reduction in fuel prices, industry leaders caution that multiple factors could influence pricing, urging cautious optimism.

Billy Gillis-Harry of PETROAN told BusinessDay the removal of logistics costs is a positive aspect but urged cautious optimism, noting that specifics would be revealed after product loading discussions.

He said, “It is difficult to give an exact figure because so many variables are at play. However, the fact that the crude oil that is being used is the one for domestic consumption, takes away the cost of freight and insurance from the total cost. So, if that has been removed, there is a likelihood that prices will be impacted positively to the benefit of Nigerians.

“But what exactly will be the price is to be awaited and worked out because, for instance, we don’t know how much he received the crude oil, whether it is in naira or dollar, and those are business information that sometimes is difficult to release.

“However, regardless of whatever the situation is, we should still expect a reprieve, some advantages should come to us. So that is my thinking.”