After years of waiting by Nigerians for its commencement of sale of petroleum products, Dangote Oil Refinery has finally started selling petroleum products domestically.
Reuters reported on Tuesday that the facility started supplying diesel and aviation jet fuel to the Nigerian market.
Devakumar Edwin, a group executive at Dangote, confirmed to Reuters that the company has begun distributing diesel and jet fuel to the local market which is an important step in Nigeria’s drive for energy independence.
“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,” Edwin told Reuters.
Making remarks on the development, Abubakar Maigandi, the head of the Independent Petroleum Marketers Association of Nigeria, told Reuters that local oil marketers set the price at 1,225 naira ($0.96) per litre for diesel after securing a bulk purchase agreement, prior to adding their mark-up.
The association’s members control about 150,000 retail stations across Nigeria, Maigandi said.
In similar light, the Smaller Depots and Petroleum Products Marketers Association of Nigeria said its members were seeking letters of credit to buy petroleum products from Dangote.
“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,” Femi Adewole, the association’s executive secretary said.
