Yuletide fuel scarcity averted as retail outlet owners partner Dangote Refinery to boost fuel supply

The Petroleum Products Retail Outlets Owners Association (PETROAN), on Friday, concluded arrangements with the Dangote Petroleum Refinery to directly lift petroleum products for distribution to depots and retail outlets of PETROAN members nationwide.

This is in a move aimed at ensuring a steady supply of petroleum products during the upcoming yuletide season,

This development comes as the Port Harcourt Refining Company reportedly commenced exporting low sulphur straight-run fuel oil, with its first shipment to Dubai, United Arab Emirates. Industry operators have expressed diverse views about the reported export, citing concerns about the refinery output since it began operations.

In a statement issued by its National Public Relations Officer, Dr Joseph Obele, PETROAN announced that the fuel retailers had struck a deal to offtake products from the Dangote refinery after several negotiations with the $20bn Lekki-based plant.

According to Obele, the agreement guarantees the availability of petroleum products during the upcoming yuletide season. He explained that the agreement was reached during a meeting with officials from the Dangote refinery on Monday, December 2, 2024.

Obele stated that the association reached a consensus on reserving monthly volume for PETROAN, payment modalities, and a favourable price rate. “The National President of PETROAN, Dr Billy Gillis-Harry, on Monday, December 2, 2024, led the negotiation team of PETROAN to a fruitful strategic business meeting with the management of Dangote refinery at the complex in Lagos,” the statement read.

READ ALSO: FUEL PRICE WAR: Retail outlet owners take on Dangote Refinery over ‘exploitative’ pricing

PETROAN expressed optimism that the general public would be the biggest beneficiary of the deal. “We reserve the right not to make public the business terms and conditions, even as we express optimism that the greatest beneficiaries in all shall be the general public as it concerns product availability and affordability,” the statement added.

The association also dismissed any form of fuel scarcity concerns and cautioned against panic buying. “PETROAN calls on stakeholders in the downstream sector to support the management of the NNPC Retail Ltd and the Dangote refinery to sustain the petroleum products supply,” the statement read.

The latest development concludes several months of negotiations between both parties and is expected to increase efficiency, affordability, and economic growth. The Dangote refinery, the largest in Africa and Europe, has already commenced the production of petrol, diesel, and aviation fuel, with plans to supply products to over 30,000 IPMAN members and 150,000 retail outlets nationwide.

This move is expected to eliminate middlemen, reduce costs, and ensure a steady supply. As the yuletide season approaches, Nigerians can breathe a sigh of relief, knowing that a steady supply of petroleum products is guaranteed.

In the words of Dr. Joseph Obele, “This agreement is a major milestone in our efforts to ensure a steady supply of petroleum products to our members and the general public. We are confident that this partnership will increase efficiency, affordability, and economic growth.”

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