Dangote Refinery Grants Approval to Seven Major Oil Marketers for Product Distribution

In a heartwarming development for Nigeria’s oil industry, seven major oil marketers have received approval from the Dangote Petroleum Refinery to distribute refined petroleum products from the $20 billion plant. The Major Oil Marketers Association of Nigeria has confirmed that dealers will start distributing fuel produced by the refinery once commercial terms are finalized.

Members of the Major Oil Marketers Association of Nigeria (MOMAN), including prominent companies like 11 Plc, Conoil Plc, and Total Nigeria Plc, have already registered with the Dangote refinery. The Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are also engaging with the refinery for product loading.

Dangote Petroleum Refinery recently announced the commencement of diesel and aviation fuel production, thanking President Bola Tinubu and various regulatory authorities for their support. Aliko Dangote, the President of the Dangote Group, expressed delight at the project’s realization, emphasizing its significance for Nigeria.

The refinery, located in Lagos, has received six million barrels of crude oil, with the first delivery on December 12, 2023, and the latest on January 8, 2024. It boasts a daily truck-loading capacity of 2,900 and adheres to international emission standards.

MOMAN’s Executive Secretary, Clement Isong, confirmed that all MOMAN members have registered with the refinery, anticipating the availability of products in their stations once production is in full swing. He emphasized the importance of the registration process and stated that commercial terms would be negotiated individually.

While excitement surrounds the refinery’s operations, questions about product pricing linger. Isong highlighted that the cost of crude oil would play a significant role in determining fuel prices from the Dangote refinery. Additionally, IPMAN and PETROAN presidents anticipate a marginal drop in prices, emphasizing the positive impact on logistics and employment opportunities.

The commencement of production at Dangote refinery marks a milestone for Nigeria’s refining capacity, with expectations of reduced fuel prices and increased self-sufficiency in petroleum product production.