As the Dangote Refinery is set to commence operation, particularly the production of diesel and Aviation fuel, seven major distributors in the oil marketing industry, namely Conoil Plc, 11 Plc, Total Nigeria Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, and NNPC Retail, have been selected to distribute refined fuel produced by the eminent Dangote Refinery, to the citizens. This move heightens enthusiasm amongst concerned parties as the refinery gears up to commence operations. The Major Oil Marketers Association of Nigeria (MOMAN) has shown willingness to commence distribution, once the commercial terms for the Dangote Refinery operation are finalized, marking an important stage in the refinery’s development.
Clement Isong, the CEO of MOMAN, has indeed affirmed that all members of the organization have successfully completed their registration with Dangote and eagerly await the timely availability of the products in their stations. Expressing his deepest appreciation, Aliko Dangote, the President of the Dangote Group, thanked President Bola Tinubu and several regulatory bodies for their unwavering support, which undoubtedly marked a significant milestone for the refinery. Dangote expressed his gratitude for the realization of this project, emphasizing its significance for our nation as it showcases the country’s competence in creating and executing extensive capital projects.
IPMAN and PETROAN set for a meeting with dangote management.
The Refinery, situated in Lagos, has successfully acquired six million barrels of unprocessed oil, triumphing over initial obstacles in supply. This accomplishment propels the refinery towards imminent production. Notably, the facility impressively aligns with rigorous global standards, loading 2,900 fleets of trucks per day. Its ingenious design adheres scrupulously to the requirements set forth by esteemed institutions like the World Bank, the US Environmental Protection Agency, the European Emissions regulations, and the Department of Petroleum Resources regarding emissions and effluents, as per Dangote Refinery’s official statement.
Moreover, the Dangote Petroleum Refinery and Petrochemical Project stands as an advanced establishment, possessing the capability to refine a total of 650,000 barrels of crude oil per day. Covering an expansive area of 2,635 hectares within the Lekki Free Trade Zone, this massive industrial facility plays a pivotal role in the conversion of crude oil into a wide range of vital petroleum derivatives. These include but are not limited to diesel, gasoline, jet fuel, and kerosene, which form the lifeblood of various industries. Concurrently, Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN) are set for a meeting with the management of Dangote’s enterprise, showcasing the profound interest within the industry towards this refinery.
Pricing information will be provided once loading commences.
Abubakar Maigandi, the President of IPMAN, said the meeting in deciding how the loading process would be carried out. Maigandi told the press that independent marketers would not be able to reveal the expenses associated with refined petroleum products until the loading starts. Maigandi explained that the pricing information will be provided once loading commences, enabling them to determine the appropriate selling price. Regarding the commencement of loading by IPMAN members, he stated that the exact date will only be determined after discussions with the company during a meeting scheduled for later this week.
Billy Gillis-Harry, president of PETROAN, an industry expert, has cautioned about the various factors that could impact pricing midst hopeful anticipation for a possible decline in fuel costs. While Gillis-Harry acknowledged the advantageous elimination of Logistics expenses, he noted that the further details would surface during deliberations on product loading. He expressed the complexity of providing an exact figure due to the plethora of variables involved. Nevertheless, the utilization of crude oil exclusively meant for domestic use eliminates the expenses for shipping and Insurance from the overall cost.
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Thus, if these factors are eliminated, it is probable that prices will be positively affected, ultimately benefiting the Nigerian population. However, he said, irrespective of the circumstances, there is still hope for relief and potential benefits ahead, he emphasized. Gillis-Harry vehemently condemned the previous years’ petroleum product pricing templates, saying it was unrealistic. On the other hand, he stated that PETROAN has been actively collaborating with the management of the Dangote refinery to facilitate the efficient supply and distribution of products from the refinery.