Dangote Refinery To Start National Petrol Distribution On Sunday, Maintain Pump Price

Weekly research has shown Dangote Refinery will start distributing its refined petrol to retail locations throughout Nigeria on Sunday.

According to sources, despite the launch of its product, the price of the petrol pump would not alter. It is anticipated that the first daily allotment will be 25 million litres, supplied to marketers for N765.99 via NNPC Trading Limited.

A source (name withheld) said: “NNPC Trading Limited will continue to import a shortfall of 15 million litres to meet Nigeria’s daily demand for petrol estimated at 40-50 million litres a day.”

“Each marketer will take a maximum of 50 trucks daily; They will buy at a price of N765.99 through the NNPC Trading Limited, including their costs movement and sell at the current pump price of N855 to N897 depending on the location per litre,” he added.

Continuing, Marketers have been directed to begin sending their trucks to the refinery today to expedite the lifting procedure and ensure a seamless transition.

Speaking further, the source revealed: “Next month, Dangote refinery will move to a daily allocation of 30 million litres from then marketers will be picking by vessels.”

Results indicated that the NNPC and Dangote refinery teams, who are now meeting in Abuja, will issue a joint statement. It is anticipated that this action will greatly increase the nation’s fuel supply and ease consumer difficulties.

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An important turning point in Nigeria’s industrialisation efforts is the Dangote Refinery, which is situated in the Lekki Free Trade Zone in Lagos. Its operationalisation is anticipated to boost economic growth and lessen the nation’s reliance on petroleum imports.

Refineries in Europe

According to statistics from analytics firm Vortexa Ltd., Nigeria continues to be a worldwide demand sink for fuel, receiving about 250,000 barrels per day in shipments last year, largely from Europe. Dangote’s production is projected to have an impact on billions of dollars of trading in fuel markets both regionally and globally.

Due to an unstable power supply from the national grid, companies in Nigeria, the fourth-biggest economy in Africa, are mostly dependent on imported refined products, which have a net worth of $17 billion yearly. As a result, European refiners have enjoyed a profitable market in Nigeria for decades.

According to traders and shipping data obtained by BusinessDay, Nigeria’s recently established Dangote refinery is increasing its gasoil shipments to West Africa, thereby overtaking refiners in Europe for market dominance.

A comment to BrandSpur business and economy news desk from Andon Pavlov, an analyst at the international trade intelligence portal Kpler, states: “As much as ‪300-400,000 barrels per day (bpd) of refining capacity in Europe is at risk of closure because of rising global gasoline production.”