Oil marketers across Nigeria have confirmed that they are set to start lifting Premium Motor Spirit (PMS), commonly known as petrol, from the newly commissioned Dangote Petroleum Refinery. This development marks a significant shift in Nigeria’s fuel supply chain as the nation’s largest refinery gears up for production.
Reports indicate that some marketers have already begun preparations, dispatching trucks to the multi-billion-dollar facility, located in Lekki, Lagos, to load petrol starting next week. While certain marketers are planning to begin lifting as early as next week, others mentioned that their tankers could arrive at the refinery as soon as Sunday.
Some marketers also revealed that they are expecting additional supplies from imported petrol by the end of September. Sources disclosed that vessels carrying petrol from international suppliers are anticipated to dock in Nigeria within the next 10 days, providing an additional boost to the country’s fuel availability.
Despite earlier statements from Alhaji Aliko Dangote, President of the Dangote Group, that the Nigerian National Petroleum Corporation (NNPC) would have exclusive rights to lift PMS from the refinery, oil marketers have confirmed that they are now preparing to begin lifting petrol from the plant. It is expected that the initial daily output from the Dangote Refinery will be around 25 million litres, according to industry insiders.
One major marketer, speaking under conditions of anonymity, disclosed, “We should start loading from the plant next week, and in addition to that, many marketers are also planning to import PMS before the month ends.” This source added that the deregulation of petrol pricing has fully taken effect, and marketers are now less dependent on NNPC for fuel supply.
The marketer emphasized the importance of competition in the now fully deregulated market, stating that this shift is helping to break NNPC’s previous monopoly on fuel distribution. “Nobody wants to be at the whims and caprices of NNPC again,” the marketer remarked.
While preparations to lift petrol from the Dangote Refinery are well underway, there is still some uncertainty surrounding the price of petrol sourced from the refinery.
When asked about the expected price, one dealer commented, “The agreement on price has not been reached yet, but what I asked our people was how sure are we that we will get the market if we bring in products at about N1,100 per litre?”
The dealer continued, “They said many people are tired of dealing with NNPC, and there will be a sufficient market for the product. So, people should prepare for a price of around N1,200 per litre, even from the depots.”
In addition to sourcing fuel from the Dangote Refinery, many marketers are planning to bring in imported products. Several major marketers expect their fuel shipments to arrive within the next 10 days, which could help foster competition and regulate prices within the market.
The dealer added, “We are doing both imports and Dangote, and that is the same for most major marketers. I don’t know which imports will arrive first, but I am aware that about three or four major marketers are expecting products soon.”
Last week, Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, announced that the downstream oil sector had been fully deregulated, and the government was no longer involved in setting petrol prices. Lokpobiri reassured Nigerians that fuel supplies would remain stable and that deregulation would allow market forces to determine petrol prices.
In a statement to the press, Lokpobiri said, “The agreement on price has not been reached yet, but what I asked our people was how sure are we that we will get the market if we bring in products at about N1,100/litre?
“They now said many people are fed up with NNPC, adding that there will be an adequate market for the product. So, people should gear up for a price of about N1,200/litre, even from the depots. I know that many are going to bring in products to stimulate competition.
“In fact, for specifics, our imports should arrive in the country in the next 10 days all things being equal. So, we are doing both imports and Dangote, and that is the same with most major marketers. I don’t know which imports are going to come in first, but I know that about three or four major marketers are expecting products.”
While there are plans for independent marketers to begin loading petrol from the Dangote Refinery, there have been conflicting reports about NNPC’s involvement.
When contacted for confirmation, a dealer stated, “I don’t know about NNPC, but I want to confirm to you that from next week, we are going to start loading petrol from that refinery. This is concrete.”
On the other hand, NNPC’s spokesperson, Olufemi Soneye, denied claims that NNPC had already begun lifting petrol from the refinery.
When asked if NNPC had started loading fuel from the refinery, Soneye simply responded, “false.” However, Soneye did not provide further details regarding the expected cost of petrol from the Dangote Refinery or the price of crude oil to be supplied by NNPC to the facility.
