• Saturday, April 13, 2024
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BusinessDay

Dangote Refinery commences supply of one million-litre diesel to each marketer

Dangote refinery (1)

Dangote Refinery has commenced the sale of Automotive Gas Oil (diesel) to oil marketers across Nigeria. This milestone was confirmed by both dealers and officials of the plant, who revealed that diesel sales began last week.

According to Abubakar Maigandi, the national president of the Independent Petroleum Marketers Association of Nigeria, the refinery’s entrance into the diesel market is expected to drive down prices significantly.

Maigandi said: “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.”

A senior management official of the refinery confirmed the commencement of diesel sales and hinted at the imminent release of Premium Motor Spirit (petrol) into the market.

Despite its recent progress, the Dangote Refinery has faced challenges in releasing refined products into the market since its official inauguration by former President Muhammadu Buhari in May 2023.

Regulatory approvals have been a major hurdle, delaying the refinery’s initial plans to introduce aviation fuel (Jet A1) and diesel into the Nigerian market.

A recent report highlighted the refinery’s struggle with regulatory approvals, which hindered its ability to meet the January deadline for product release. However, the refinery had announced on January 12, 2024, that it had commenced production of diesel and aviation fuel.

Aliko Dangote, the chairman of the Dangote Group, expressed gratitude to President Bola Tinubu and various regulatory bodies for their support in realising the project.

He said, “We thank President Bola Tinubu for his support and for making our dream come true… We also thank the NNPC, NUPRC, and NMDPRA for their support. These organizations have been our dependable partners in this historic journey.”

The Dangote Refinery, with a capacity of 650,000 barrels per day, holds the title of Africa’s largest refinery. Situated on a peninsula on the outskirts of Lagos, the refinery aims to transform Nigeria into a net exporter of fuel to other West African countries, marking a significant shift in the region’s energy dynamics.