The $20 billion Dangote Petroleum Refinery has disclosed that the highly anticipated sale of its refined petroleum products will be conducted in naira rather than in United States dollars as previously speculated. Additionally, the registration process for marketers at the refinery is ongoing, with an increasing number of operators actively registering with the plant.
Debunking the speculation about the pricing currency, the announcement by the Dangote Petroleum Refinery on January 12, 2023, revealed the commencement of production of different petroleum products such as Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel. Dispelling any ambiguity, oil marketers confirmed that refined products from the refinery would be sold in the local currency, providing clarity and reassurance to market players.
Moreover, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has revealed its engagement with the management of the Dangote Petroleum Refinery to secure a direct supply of petroleum products. The objective of this collaboration is to streamline the supply chain, removing associated bottlenecks. PETROAN’s aspiration to directly purchase from the refinery aims to have a positive impact on the pricing of petroleum products and to eliminate middlemen in the business, potentially benefiting both the association and consumers.
In a significant development, the Dangote Petroleum Refinery has officially registered oil marketers as distributors of its refined petroleum products. The Dangote Group has confirmed the registration of three prominent associations of marketers, comprising the Depot and Petroleum Products Marketers Association of Nigeria, the Major Oil Marketers Association of Nigeria, and the Independent Petroleum Marketers Association of Nigeria.
This step marks a crucial milestone in the operationalization of the refinery’s distribution network, as these three associations collectively account for 75 percent of the total market in Nigeria. The decision to include these key market players as official distributors underscores the refinery’s focus on establishing a robust distribution framework, ensuring a broad and efficient network.
These recent developments not only address speculation and concerns surrounding the pricing and distribution of refined petroleum products from the Dangote Petroleum Refinery but also signal the ongoing progression towards operationalizing its distribution network. With the clarification on pricing and engaging directly with petroleum product associations, the refinery is taking decisive steps to fortify its position in the Nigerian oil sector and facilitate a streamlined distribution process for its high-quality, locally refined products.
