Dangote Refinery has started supplying petroleum products to the local market. According to Reuters, the executive director of the Dangote Group, Devakumar Edwin, verified the start of supplies.
“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,” Mr Edwin said.
Speaking on the sale of diesel into the local market, the president of the Independent Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, stated that local oil marketers agreed on a price of N1,225 ($0.96) per litre of diesel after a bulk purchase agreement, before adding their markup.
He added that the IPMAN members, who manage about 150,000 retail stations in Nigeria, were preparing for the influx of products from Dangote Refinery.
Meanwhile, smaller depots and gasoline marketers are reportedly looking for letters of credit to purchase petroleum goods 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,” the association’s executive secretary, Femi Adewole, said.
The commencement of supply follows Dangote Petroleum Refinery’s earlier move in January to begin production of diesel and aviation fuel. The refinery received six million barrels of crude oil at its Single Point Mooring (SPM) terminals located 25 kilometres from the shore.
The company took a step closer to beginning production of refined petroleum products when it received an extra one million barrels of bonny light crude from the Nigeria National Petroleum Company (NNPC).
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