Nigeria’s Dangote oil refinery has commenced the supply of petroleum products to marketers across the country, dealers get one million litres of diesl each at N1,225/litre.
The development has resulted in reduction in the pump price of Automotive Gas Oil, popularly called diesel, from about N1,700/litre which it sold for a few weeks ago, to around N1,350/litre in some locations across the country.
The refinery, Africa’s largest, in the commercial capital Lagos, was built at a cost of about $20 billion, with capacity to refine up to 650,000 barrels per day (bpd) and will be the largest in Africa and Europe when it reaches full capacity this or next year.
Dangote’s group executive, Devakumar Edwin, confirmed shipping of diesel into the local market.
According to him, “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.”
Local oil marketers agreed a price of 1,225 naira ($0.96) per litre of diesel following a bulk purchase agreement, before putting their mark-up, said Abubakar Maigandi, head of the Independent Petroleum Marketers Association of Nigeria.
The association’s members control about 150,000 retail stations across Nigeria, Maigandi said.