Following the commencement of sales of Automotive Gas Oil (diesel), and aviation fuel by Dangote Petroleum Refinery, the pump price of the diesel has crashed from N1,700/litre to about N1,350, in some locations across the nation. It was gathered that the $20bn worth of Nigeria-based refinery began pumping out diesel to the domestic market days back, and has sold over a million litres to each registered oil marketer that acquired the product from the plant since it started the diesel sale.
The development was also confirmed by the Executive Director of the Dangote Group, Devakumar Edwin. “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,” Mr Edwin was quoted by Reuters as saying.
Speaking on the sale of diesel into the local market, Abubakar Maigandi, the president of the Independent Marketers Association of Nigeria (IPMAN), said the local oil marketers agreed on a price of 1,225 naira ($0.96) per litre of diesel following a bulk purchase agreement, before putting their mark-up. He added that the association’s members control about 150,000 retail stations across Nigeria.
Meanwhile, smaller depots and petroleum marketers are said to be seeking letters of credit to buy petroleum products from Dangote.
“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,” Femi Adewole, the association’s executive secretary, was quoted as saying.
