Dangote Refinery’s diesel, aviation fuel hit Nigerian market

Automotive Gas Oil (AGO) also known as diesel and Jet A-1 fuel popularly known as Aviation fuel refined by Africa’s largest refinery, Dangote Refinery, has hit the Nigerian domestic market, sources familiar with the matter said on Tuesday.

The head of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, told Reuters that local oil marketers set the price at N1,225 n ($0.96) per litre for diesel after securing a bulk purchase agreement.

He said the association’s members control about 150,000 retail stations across Nigeria.

Also, the Executive Secretary of the smaller Depots and Petroleum Products Marketers Association of Nigeria, Femi Adewole, said the association members were seeking letters of credit to buy petroleum products from Dangote.

READ ALSO: Dangote refinery turns to US for crude oil supply

“Our members are discussing with banks and these talks have reached advanced stages, when we have our letters of credit, we will begin lifting products,” he stated.

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

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

“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel.

“Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations,” Edwin stated.

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 Africa’s richest man, Aliko Dangote, with an investment of $20 billion.

By: Babajide Okeowo

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