• Tuesday, July 16, 2024
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BusinessDay

Marketers distribute 25m litres of Dangote diesel, gear up for July petrol rollout

Diesel above N1,000/litre worsens businesses’ woes

Independent marketers have already lifted and distributed over 25 million liters of Automotive Gas Oil, commonly known as diesel, produced by the Dangote Petroleum Refinery in less than three months since the refinery began releasing the product.

On Saturday, it was reported that the refinery is still registering oil marketers. This ongoing registration is in preparation for the plant’s upcoming release of Premium Motor Spirit (PMS), also known as petrol, into the local market by July.

Read also: Dangote Refinery set for June diesel exports, eyes NGX listing by December 2024

Marketers are gearing up to start the distribution of PMS from the refinery as soon as it becomes available.

The Independent Petroleum Marketers Association of Nigeria, Major Oil Marketers Association of Nigeria, and the Petroleum Products Retail Outlets Owners Association of Nigeria have all confirmed that their members are registering with the Lagos-based refinery.

They also confirmed that the continuous lifting of diesel from the Dangote Refinery has helped stabilize diesel prices and ensured a steady supply since the plant began production in March this year.

Since the Dangote Refinery began supplying diesel to the Nigerian market in late March 2024, the diesel price has dropped from about N1,800 per liter to N1,200 per liter, and the product’s availability has been consistently maintained nationwide.

Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), reported that IPMAN members have distributed more than 25 million litres of Automotive Gas Oil (AGO) from the Dangote refinery across the country.

“Independent marketers are registering with Dangote, and many of us have lifted a lot of products from Dangote’s depot. I’m aware of so many marketers who have registered with the Dangote Refinery.

“I can also confirm that independent marketers have loaded over 25 million litres of diesel since the refinery started the domestic sale of diesel to downstream oil sector operators in Nigeria,” Ukadike said.

On April 2, 2024, oil marketers announced that the Dangote refinery began selling diesel to the local market. Both dealers and plant officials confirmed this news, explaining that diesel sales from the refinery had started the previous week.

“They began supplying diesel to marketers last week and have plans to sell aviation fuel soon. Several of my members have already confirmed their purchases,” reported Abubakar Maigandi, the National President of IPMAN, during an interview.

Maigandi also mentioned that Dangote’s entry into the diesel market would drive prices down, noting that diesel prices had surged to about N1,700 per litre at that time.

“The price of diesel is going to fall because of the release of products from Dangote Refinery. It is already coming down in Lagos,” Maigandi had stated.

Officials at the Dangote refinery have not commented on ongoing issues concerning the plant. However, dealers reported that marketers are eagerly anticipating the refinery’s release of petrol. They believe that this move could significantly reduce petrol prices.

“Marketers are loading more products from the plant and are eager to begin the lifting of PMS from the refinery since the Chairman of the group has said that PMS should hit the market in July,” Ukadike stated.

“I must say that it is a good thing to know that PMS is being finalised for release from that plant. This is because since Dangote diesel came into the market the price of diesel has not crossed the N1,200/litre mark.

“Independent marketers even in far away northern states are selling diesel at N1,200/litre at the pumps. So the coming of Dangote has slowed down the skyrocketing price of diesel. Now we are expecting PMS by July and this will end the importation of petroleum products,” he added.