Dangote Refinery is set to begin distributing its refined petrol to retail outlets across Nigeria starting Sunday, September 15, 2024, according to Petroleum Price.
Sources confirmed that the pump price of petrol will remain unchanged despite the introduction of Dangote’s product into the market. Initially, 25 million litres will be allocated daily, distributed through NNPC Trading Limited at a cost of N765.99 per litre to marketers.
“NNPC Trading Limited will continue importing the remaining 15 million litres of petrol to meet Nigeria’s daily demand, which is estimated at 40-50 million litres per day,” a source revealed.
He added, “Each marketer will be allowed to lift a maximum of 50 trucks daily. They will purchase at N765.99 per litre via NNPC Trading Limited, including logistics costs, and sell at the current pump price of N855 to N897 per litre, depending on the location.”
To facilitate the process, marketers have been directed to begin sending trucks to the refinery today for the lifting of products.
“By next month, Dangote Refinery will increase daily allocations to 30 million litres, and marketers will start lifting by vessels,” the source added.
A joint statement is expected from both NNPC and Dangote Refinery teams, who are currently in discussions in Abuja. This move is anticipated to significantly improve Nigeria’s fuel supply and ease the challenges faced by consumers.
Located in the Lekki Free Trade Zone in Lagos, Dangote Refinery is a key milestone in Nigeria’s industrialization journey. Its operations are expected to reduce the nation’s reliance on imported petroleum products and bolster economic growth.
Dangote’s production is projected to influence billions of dollars in regional and global fuel trade, as Nigeria remains a significant importer, having received nearly 250,000 barrels per day of fuel shipments last year, mainly from Europe, according to data from analytics firm Vortexa Ltd.
For decades, European refiners have benefited from Nigeria’s dependency on imported products due to an unreliable national power grid, forcing Africa’s fourth-largest economy to import refined petroleum with a net value of $17 billion annually.
However, with the Dangote refinery ramping up gasoil exports to West Africa, it is capturing market share from European refiners.
“As much as 300-400,000 barrels per day (bpd) of refining capacity in Europe is at risk of closure due to rising global gasoline production,” noted Andon Pavlov, an analyst at Kpler, a global trade intelligence platform.
