Business News

Dangote Refinery begins supply of diesel, aviation fuel to Oil Marketers 

Dangote oil refinery began supplying the Nigerian domestic market with petroleum products such as diesel and aviation jet fuel on Tuesday, according to sources familiar with the matter.  

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. 

The smaller Depots and Petroleum Products Marketers Association of Nigeria said its members were seeking letters of credit to buy petroleum products from Dangote. 

An executive from the company and various fuel marketing organizations told Reuters that oil marketers load diesel from the refinery, an important step in Nigeria’s drive for energy independence. 

In addition, Devakumar Edwin, a group executive at Dangote, confirmed that the company has begun distributing diesel and jet fuel to the local market. 

The Dangote refinery, positioned on a peninsula near Lagos’s commercial centre, represents Africa’s largest refinery project, completed after many postponements and financed by Aliko Dangote, Africa’s wealthiest individual, with an investment of $20 billion.