Dangote refinery sells diesel at N1,225/litre to local market

Dangote oil refinery started supplying petroleum products to the local market on Tuesday, a company executive and fuel marketing associations said, a major step in the country’s quest for energy independence.

It cost Africa’s wealthiest man, Aliko Dangote $20 billion to build the world’s largest refinery in Ibeju Lekki and was completed after several years of delays.

It is capable of refining up to 650,000 barrels a day, and when it reaches full capacity within a year, will be the biggest refinery in Africa and Europe.

Dangote’s group executive, Devakumar Edwin, revealed the shipping of diesel and jet fuel into the local market, according to Reuters.

He 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 liters, though we try to push for 37 million liters vessels, for ease of operations.”

Local oil marketers agreed on a price of 1,225 naira ($0.96) per litre of diesel following a bulk purchase agreement, before putting their markup, the head of the Independent Petroleum Marketers Association of Nigeria, said Abubakar Maigandi.

Maigandi said the association’s members control over 150 thousand retail outlets in Nigeria.

Meanwhile, commenting, the Depots and Petroleum Products Marketers Association of Nigeria, said its members were requesting letters of credit to buy petroleum products from Dangote.

In his remark, the association’s executive secretary, 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.

The Dangote refinery is seen as the turning point to end Nigeria’s reliance on imported petroleum products.

Even though the fact that Nigeria is Africa’s most populous country and the largest oil producer, it imports almost all of its fuel because of a lack of refining capacity.