Dealers receive a million gallons each at a discounted price of N1,225 per litre in Oyo, Lagos, and Ogun.
Following the commodity's sale by the Dangote Petroleum Refinery, the pump price of automotive gas oil, often known as diesel, has decreased from approximately N1,700/litre, which it was selling for, a few weeks ago, to approximately N1,350/litre in some locations nationwide.
On Tuesday, information surfaced that the $20 billion refinery began supplying fuel to the home market last Wednesday.
Since the plant started selling diesel, it has sold a minimum of one million liters to every registered oil marketer that received the fuel.
According to representatives of the multibillion-dollar factory and oil dealers, the product was sold to marketers for N1,225 to N1,300 per litre, depending on the quantity purchased.
This was announced concurrently with information that the refinery planned to begin supplying Premium Motor Spirit to the domestic market in May of this year.
Since last week, they have been pumping diesel to marketers. They also pledged to start selling aviation fuel shortly. Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria, told one of our journalists, "After making the purchase, some of my members confirmed this to me."
He went on, "Although we as an association have not yet received the product, certain of our marketers have begun to do so because we want to learn the true price at which it will be sold to us when we make larger purchases. Nevertheless, because some of our marketers have begun to make purchases, they have begun to offer diesel.1,225 N/L
This was announced concurrently with information that the refinery planned to begin supplying Premium Motor Spirit to the domestic market in May of this year.
Since last week, they have been pumping diesel to marketers. They also pledged to start selling aviation fuel shortly. Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria, told one of our journalists, "After making the purchase, some of my members confirmed this to me."
He went on, "Although we as an association have not yet received the product, certain of our marketers have begun to do so because we want to learn the true price at which it will be sold to us when we make larger purchases. Nevertheless, because some of our marketers have begun to make purchases, they have begun to offer diesel.1,225 N/L
"They are offering a minimum volume of one million liters every marketer, and their prices are N1,225 per litre. Additionally, they promised us that while they will produce more goods, they are starting with this one (diesel) for the time being. Therefore, we anticipate that PMS will be released at any time.
Given that the price of fuel recently reached a high of over N1,700 per litre, Maigandi predicted that Dangote's action will undoubtedly cause the commodity to plummet.
"Due to the Dangote refinery's product discharge, the price of diesel would decrease. In Lagos, it is actually already beginning to collapse. According to Maigandi.
Dr. Ralph Arokoyo, the CEO of AF Ralph Oil and Gas Ventures and another oil marketer, affirmed that the refinery had begun selling diesel to dealers, adding that the facility had begun distributing the fuel last Wednesday.
In response to a question about whether the Dangote refinery had begun providing fuel to the market, Arokoyo said, "Yes, they have." Since last Wednesday, when they began selling diesel, they have done business with numerous marketers, including those who are members of MEMAN (the Major Energy Marketers Association of Nigeria) and IPMAN, in addition to other privately registered independent dealers.
"One million litres is the minimum," Arokoyo responded when questioned about the minimum amount being sold to dealers and at what cost.
People are flooding the refinery right now since the rate is reasonable in comparison to what other large tank farms are selling.
"The price varies based on the volume you are purchasing, from N1,250 to N1,300 per litre. For the past few weeks, the price of diesel has been ranging between N1,600 and N1,700 per liter, thus this is wonderful news for Nigerians.
However, because of the refinery's products and the fact that they have been shipped out since last Wednesday, prices are starting to decline in various parts of the federation. AGO (diesel) is currently available at some stations at N1,400 per litre.
Some are even selling their products for N1,350 a litre right now, and I hope that more reductions will be seen in the coming weeks as more goods from the facility are released onto the market and quickly travel the entire nation, in the cost of the commodity.
"The price varies based on the volume you are purchasing, from N1,250 to N1,300 per litre. For the past few weeks, the price of diesel has been ranging between N1,600 and N1,700 per liter, thus this is wonderful news for Nigerians.
However, because of the refinery's products and the fact that they have been shipped out since last Wednesday, prices are starting to decline in various parts of the federation. AGO (diesel) is currently available at some stations at N1,400 per litre.
Some are even selling their products for N1,350 a litre right now, and I hope that more reductions will be seen in the coming weeks as more goods from the facility are released onto the market and quickly travel the entire nation, in the cost of the commodity.
Arokoyo responded in the affirmative when asked if the corporation told dealers when it would begin distributing gasoline onto the market.
"They (the Dangote refinery) stated that the petroleum will be accessible from now until May of next month. Because PMS is mostly used by Nigerians, we are excited about this," the oil marketer said.
Senior Dangote refinery officials verified the diesel sales to marketers, citing an impending market release of Premium Motor Spirit, also known as gasoline.
"The product, diesel, is widely available, and marketers can easily obtain it." Since last week, marketers have been able to purchase the goods, and sales have improved.
Because they were not authorized to comment on the subject, the official, who spoke on condition of anonymity, said, "The price of the product in various locations of the country will come down, and it is already coming down in many parts of Lagos since we started releasing products to marketers."
The Dangote refinery has encountered numerous obstacles in its efforts to releasing enhanced items onto the market following former President Muhammadu Buhari's formal inauguration in May of last year.
"The product, diesel, is widely available, and marketers can easily obtain it." Since last week, marketers have been able to purchase the goods, and sales have improved.
Because they were not authorized to comment on the subject, the official, who spoke on condition of anonymity, said, "The price of the product in various locations of the country will come down, and it is already coming down in many parts of Lagos since we started releasing products to marketers."
The Dangote refinery has encountered numerous obstacles in its efforts to releasing enhanced items onto the market following former President Muhammadu Buhari's formal inauguration in May of last year.
Remember that on February 8, 2024, The PUNCH revealed that there were hints that Dangote Petrochemical Refinery's plan to deliver diesel and aviation fuel (Jet A1) for sale in Nigerian markets in January had been delayed by unfinished business with regulatory approvals.
The largest refinery in Africa was still struggling to get through the several levels of regulatory permits, weeks after the management of the facility set a deadline of January 31 for it to start selling its petroleum product on the local market.
According to the statement, the refinery started producing refined petroleum products at the large plant before the development happened.
The Dangote refinery declared on January 12, 2024, that it has started producing aviation fuel, also known as JetA1, and automotive gas oil, also known as diesel.
In a statement released at the time by his company, Aliko Dangote praised President Bola Tinubu for his encouragement, assistance, and wise counsel in bringing the project to fruition.
In a statement released at the time by his company, Aliko Dangote praised President Bola Tinubu for his encouragement, assistance, and wise counsel in bringing the project to fruition.
As he disclosed that the facility would begin pumping diesel and aviation fuel in January, subject to regulatory approvals, Dangote also thanked Nigerians, the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, NMDPRA, and Nigerians in general for their support and belief in the historic project.
"We are grateful to President Bola Tinubu for his backing and for realizing our dream," he declared. His innovative leadership and quick attention to detail made this production conceivable as it is seen now.
His intervention at different points in time removed all obstacles, hastening the project's actualization. We also appreciate the help from NNPC, NUPRC, and NMDPRA. These organizations have shown to be our trusted allies on this momentous expedition.
We also appreciate Nigerians' faith in us and assistance in this undertaking. We have begun producing aviation gasoline and diesel, and if we get regulatory approval, the products should be available on the market this month.
"We are grateful to President Bola Tinubu for his backing and for realizing our dream," he declared. His innovative leadership and quick attention to detail made this production conceivable as it is seen now.
His intervention at different points in time removed all obstacles, hastening the project's actualization. We also appreciate the help from NNPC, NUPRC, and NMDPRA. These organizations have shown to be our trusted allies on this momentous expedition.
We also appreciate Nigerians' faith in us and assistance in this undertaking. We have begun producing aviation gasoline and diesel, and if we get regulatory approval, the products should be available on the market this month.
Built on a peninsula on the outskirts of Lagos, the commercial center of Africa, the refinery has a nameplate capacity of 650,000 barrels per day, making it the largest on the continent.
Nigeria has long been dependent on costly imports to supply almost all of its fuel needs, but the $20 billion refinery is expected to change that, potentially shifting the industry's power and profit dynamics to the point where Nigeria becomes a net exporter of fuel to other West African nations.
The factory did not actually start selling diesel in Nigeria as one of its initial refined products
sale, since the refinery put out tenders to sell two petroleum cargoes for export, as The PUNCH revealed in February.
According to the report, which was verified by trading sources with knowledge of the situation who spoke to Reuters at the time, this was the first from the new refinery.
Nigeria has long been dependent on pricey imports for almost all of the petroleum it uses, but the $20 billion refinery is expected to change that, potentially shifting the industry's power and profit dynamics to the point where Nigeria becomes a net exporter of fuel to other West African nation
According to the report, which was verified by trading sources with knowledge of the situation who spoke to Reuters at the time, this was the first from the new refinery.
Nigeria has long been dependent on pricey imports for almost all of the petroleum it uses, but the $20 billion refinery is expected to change that, potentially shifting the industry's power and profit dynamics to the point where Nigeria becomes a net exporter of fuel to other West African nation
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