Dangote Refinery: Marketers commence buying diesel, aviation fuel, diesel price drops by 20.6%

By Tayo ABIOLA

Many oil marketers have started lifting diesel and aviation fuel from the Dangote Refinery which commenced operation.

Such include members of Major Energy Marketers Association of Nigeria, MEMAN, Independent Petroleum Marketers Association of Nigeria and others.

The Chief Executive Officer/CEO, MEMAN, Mr. Clement Isong, said oil marketers have started to lift diesel and aviation fuel from the $20 billion Dangote Refinery.

Isong said, “Our members have started lifting diesel and aviation fuel from the Dangote Refinery. It is a good development that will impact the domestic market.”

A member of IPMAN confirmed, “Independent marketers have started lifting diesel from the plant. With improved supply, it is hopeful that the domestic market will be positively impacted.”

The Executive Secretary, Smaller Depots and Petroleum Products Marketers Association of Nigeria, Femi Adewole, said: “Our members are discussing with banks, and these talks have reached advanced stages. When we have our letters of credit, we will begin lifting products.”

Dangote’s Group Executive, Devakumar Edwin, who oversees the development, said, “We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel.

“Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels for ease of operations.”

Recall, local oil marketers had before the lifting agreed on a price of 1,225 naira ($0.96) per litre of diesel under the bulk purchase agreement signed with Dangote Refinery and would mark up prices to cover logistics and other costs.

The price of Automotive Gas Oil, AGO, (diesel), has dropped by 20.6 per cent to N1,350 per litre in April, as the Dangote Refinery pumps the product into the domestic market.

Nigeria’s inflation and foreign exchange crisis had pushed the prices of the product to about N1,700 per litre in most parts of the nation, including Lagos and Abuja.

Usually, it was mostly imported from the global market.