Dangote intends to sell each marketer one million litres of diesel.
Sales of diesel, or automobile petrol oil, to oil marketers around the country have begun at the Dangote Petroleum Refinery, which is worth $20 billion.
On Tuesday, plant officials and dealers verified the rumour that the refinery had started selling diesel last week.
Last Thursday, they began supplying marketers with diesel. Soon, they would also offer aircraft fuel, they said. Abubakar Maigandi, national president of the Independent Petroleum Marketers Association of Nigeria, confirmed this to our correspondent after several of his members made the purchase.
Diesel recently hit a high of almost N1,700 per litre, but he predicted that Dangote’s move will cause prices to plummet.
Diesel prices are expected to decline as a result of items being released from Dangote Refinery. “Actually, it is already falling in Lagos,” Maigandi said.
According to a top management official of the corporation, diesel has already been sold to marketers. The source also mentioned that Premium Motor Spirit, often known as petrol, will soon be available for purchase.
In May 2023, former President Muhammadu Buhari formally inaugurated the Dangote Refinery. Since then, the facility has encountered numerous challenges in its efforts to distribute refined products to the market.
Dangote Petrochemical Refinery had planned to provide jet fuel (Jet A1) and diesel for sale in the Nigerian market in January of 2024, but on February 8, 2024, signs surfaced that pending regulatory permits had delayed the release.
Despite setting a deadline of January 31 to start selling its petroleum product in the local market, the largest refinery in Africa is still struggling to get through the many levels of regulatory permits, according to the article.
The refinery started producing refined petroleum products at the massive facility, which led to the development, according to the statement.
Diesel and JetA1, two types of aviation fuel, were announced to be in production on January 12, 2024, by the Dangote refinery.
In a statement released by his firm at the time, Aliko Dangote expressed gratitude to President Bola Tinubu for his backing, encouragement, and insightful counsel in bringing the project to fruition.
Dangote extended his gratitude to the Nigerian National Petroleum Company Limited, the Nigerian Upstream Petroleum Regulatory Commission, NMDPRA, and the people of Nigeria for their unwavering faith in the groundbreaking project. He also announced that, pending regulatory clearances, the facility would begin producing diesel and aviation fuel in January.
President Bola Tinubu’s support and the realisation of his goal were acknowledged by him, he added. Without his foresight and meticulous attention to detail, this production, as seen now, would never have been conceivable.
“He helped get the idea off the ground faster by removing obstacles at different points in time. The NNPC, NUPRC, and NMDPRA are also appreciated for their assistance. Throughout this momentous voyage, these groups have been our reliable allies.
The Nigerian people’s faith and backing of this effort are also appreciated. Once we acquire the necessary regulatory permits, we will have our diesel and aviation fuel products on the market within this month. Production has already begun.
The biggest refinery in Africa, situated on a peninsula just outside of Lagos, the commercial metropolis, with a nameplate capacity of 650,000 barrels per day.
The $20 billion refinery has the potential to change the power and economic dynamics of the sector. Previously, Nigeria had to import nearly all of its petroleum, but now it would be able to sell fuel to other West African countries.