Dangote refinery distributes over 25 million litres of diesel in first three months

…Stabilizes Nigerian market…

By Innocent Raphael 

Nigeria’s energy sector, independent marketers have lifted and distributed over 25 million litres of Automotive Gas Oil (AGO), commonly known as diesel, produced by the Dangote Petroleum Refinery within three months of the plant beginning operations.

As of Saturday, the registration of oil marketers with the $20 billion refinery continues, with more dealers preparing for the refinery’s upcoming release of Premium Motor Spirit (PMS), also known as petrol, anticipated in July. The marketers are gearing up to distribute PMS from the plant.

The Independent Petroleum Marketers Association of Nigeria (IPMAN), Major Energies Marketers Association of Nigeria (MOMAN), and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have confirmed that their members are registering with the Lagos-based refinery. 

These organizations also reported the ongoing distribution of diesel, which has stabilized prices and ensured a steady supply since production began in March.

Diesel prices have decreased from about N1,800 per litre to N1,200 per litre following the introduction of Dangote refinery’s diesel into the Nigerian market in late March 2024. Since then, the product has been consistently available nationwide.

IPMAN’s National Public Relations Officer, Chief Ukadike Chinedu, commented on the stabilization of diesel prices and availability. 

He confirmed that over 25 million litres of AGO from the refinery have been distributed by IPMAN members across the country.

“Independent marketers are registering with Dangote, and many have already lifted significant quantities of product from Dangote’s depot.

“I can also confirm that independent marketers have loaded over 25 million litres of diesel since the refinery started domestic sales,” Chinedu stated.

The sale of diesel to the domestic market by Dangote Refinery began on April 2, 2024. At that time, dealers and plant officials confirmed that the refinery had started pumping out diesel the previous week, with plans to sell aviation fuel soon. 

IPMAN’s National President, Abubakar Maigandi, had indicated that the entry of the Dangote refinery into the market would lead to a reduction in diesel prices, which had peaked at about N1,700 per litre.

“The price of diesel is going to fall because of the release of products from Dangote Refinery. In fact, it is already coming down in Lagos,” Maigandi had said. This prediction came true, with diesel prices dropping to N1,200 per litre.

Despite the refinery’s officials remaining silent on the matter, dealers expressed anticipation for the refinery’s petrol release, hoping it would further reduce fuel costs. “Marketers are loading more products from the plant and are eager to begin the lifting of PMS from the refinery,” Chinedu noted.

He added, “The introduction of Dangote diesel has kept prices stable at N1,200 per litre, even in northern states. We now expect PMS by July, which should end the importation of petroleum products and further stabilize the market.”