More oil marketers are joining MRS in directly lifting petroleum products from the Dangote Refinery facility, following the successful commencement of operations at the Dangote Refinery.
Two prominent players in Nigeria’s downstream oil and gas sector, Ardova Plc and Heyden Petroleum, have a bulk purchase agreement with Dangote Petroleum Refinery, according to a statement by Dangote group.
This development is expected to significantly improve fuel distribution across the country and alleviate fuel scarcity concerns.
A recent video released by a male influencer claiming to show the superiority of petrol from the Dangote refinery over that of the Nigerian National Petroleum Company Limited (NNPC) has generated controversy across stakeholders in Nigeria’s downstream sector.
A video posted by @valorreviews on TikTok had shown a man using two small tiger generator, popularly called ‘I better pass my neighbour generator’ in Nigeria,’ to compare the running time of MRS and NNPC PMS, also known as petrol.
The video claimed that Dangote-refined petrol sold by MRS Oil lasts longer than the PMS available at NNPC stations and, in addition, more affordable.
He then tested both fuels in identical new generators, noting that the NNPCL-sourced fuel lasted 17 minutes, while the Dangote fuel ran for 33 minutes.
The video quickly gained attention, with many Nigerians sharing similar experiences regarding fuel quality from different suppliers.
Read also: Dangote refinery reduces petrol ex-depot price to N890
NNPC’s gets supply from Dangote refinery
NNPC dismissed claims online saying that fuel from the state-owned company doesn’t last compared to others, noting that its Lagos filling stations source petrol from the Dangote Refinery.
“It is important to emphasise that a significant percentage of Premium Motor Spirit (PMS) sold at NNPC retail stations in Lagos—where this deceptive video was created — is sourced from the Dangote Refinery, a strategic partner in promoting local production and energy security,” Olufemi Soneye, NNPC’s chief corporate communications officer said.
MRS, Ardova, Heyden
BusinessDay’s findings showed three players in Nigeria’s downstream oil and gas sector, MRS Ardova Plc and Heyden Petroleum, have bulk purchase agreement with Dangote Petroleum Refinery.
The company said the bulk purchase agreement with Dangote Petroleum Refinery will enable both Ardova and Heyden to secure a reliable and consistent supply of petroleum products from the world’s largest single-train refinery, ensuring a stable supply of fuel at competitive prices, and benefiting consumers across the country.
The arrangement ensures that Ardova and Heyden will have access to a full range of refined products, and secure their operations with a reliable supply chain.
A statement from Ardova Plc, as quoted by Dangote Group, underscored the importance of the agreement in fostering a more competitive environment within Nigeria’s downstream oil and gas sector.
Ardova had been a key off-taker from Dangote Refinery since its inception, but the new framework was expected to formalise and strengthen the partnership between the two companies, creating long-term benefits for both parties, Dangote Group stated
The statement said, “This framework will see Ardova Plc offtake a full slate of petroleum products from the refinery. While Ardova Plc has been a significant off-taker from the refinery since its inception, this new framework will institutionalise a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry in the country.”
It added, “The partnership with Dangote Refinery is poised to have a transformative impact on Nigeria’s oil and gas market. By ensuring a stable and affordable supply of fuel products in the over 1,000 retail outlets of the two companies, the agreement will help to alleviate the recurring issue of fuel scarcity that has long plagued Nigeria.”
The Dangote Refinery, which began production in 2024, has already played a pivotal role in addressing the challenges in the downstream sector. Its large-scale operations have helped alleviate the supply pressures that often lead to price hikes and fuel shortages.
During the festive season, Nigerians enjoyed a relatively smooth period, with stable fuel availability and no significant price increases at the pump.
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