- Dealers Get one Million Litres Each at N1,225/litre,
Dangote Refinery has commenced the sale of Automotive Gas Oil (diesel) and aviation fuel to oil marketers across Nigeria.
This was confirmed by both dealers and officials of the plant, who revealed that diesel sales began last week.
In a discussion with Reuters ,the head of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, revealed that local oil marketers set the price at N1,225 n ($0.96) per litre for diesel after securing a bulk purchase agreement.
He stated “They started pumping out diesel to marketers since last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making the purchase,”
“They are selling at N1,225/litre and the minimum volume they are giving is one million litres per marketer. Also, they assured us that they will release more products, but for now this (diesel) is what they are starting with. So we are expecting them to release PMS anytime from now.”
Maigandi said the move by Dangote would definitely lead to a crash in diesel price, as the commodity rose to a high of about N1,700/litre recently.
“The price of diesel is going to fall because of the release of products from Dangote refinery. In fact, it is already coming down in Lagos,” Maigandi stated.
It sold a minimum of one million litres to each registered oil marketer that got the product from the plant since it commenced diesel sale.
Also, the Executive Secretary of the smaller Depots and Petroleum Products Marketers Association of Nigeria, Femi Adewole, said the association 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,” he stated.
An executive from the company and various fuel marketing organizations told Reuters that oil marketers loaded diesel from the refinery to signal an important step in Nigeria’s drive for energy independence.
Confirming the this development ,the group executive at Dangote, Devakumar Edwin, confirmed that the multibillion dollars refinery has begun distributing diesel and jet fuel to the local market.
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 litres, though we try to push for 37 million litres vessels, for ease of operations”
Meanwhile, the National Vice Chairman of IPMAN, Hammed Fashola, also confirmed that Dangote refinery had commenced the sale of diesel to marketers.
However, Fashola said IPMAN had yet to start receiving diesel from the private oil refining company.
“Yes, it is correct (that Dangote has started selling diesel), but not yet to IPMAN. Some marketers are already getting allocation, we are still waiting for our own. We’ve put in our request, and I am very sure that at the appropriate time, they will call us,” Fashola stated.
Fashola noted that Dangote’s diesel would have a positive effect on the price of the product, saying “at least there would be a difference from the imported one”.
