Politics
Dangote’s Entry Into Fuel Market Sparks Interest As IPMAN Foresees Marketers Embracing Naira Transactions
Dangote’s Entry Into Fuel Market Sparks Interest As IPMAN Foresees Marketers Embracing Naira Transactions....KINDLY READ THE FULL STORY HERE▶
Refined petroleum products from the $20 billion Dangote Petroleum Refinery will be sold in the local currency, the naira, and not in the United States dollar, as some speculations had suggested, clarified oil marketers on Monday……..CONTINUE READING
Downstream oil sector dealers also emphasized that the registration process for marketers at the refinery was still ongoing, with many operators continuing to register with the plant.
Reports indicated that officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority were in discussions with the refinery’s management to finalize the pricing template for products manufactured by the facility.
On January 12, 2023, the Dangote Petroleum Refinery announced the commencement of production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel). Aliko Dangote, the President of Dangote Group, expressed delight in reaching this milestone, highlighting its significance for Nigeria.
Following the announcement, The BUSHRADIOGIST reported on January 15, 2023, that seven major oil marketers in Nigeria had registered with the refinery for the lifting and distribution of refined petroleum products. Notable among them were 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail.
Concerns were raised by some Nigerians regarding the supply of crude to the plant in dollars and whether this would lead to the sale of refined products in dollars, given the refinery’s location in the free trade zone.
Addressing these concerns, the National Public Relations Officer of IPMAN, Chief Ukadike Chinedu, clarified that while crude oil was an international commodity traded in dollars, the refinery would sell its products in the local currency, the naira. He emphasized that Dangote’s other businesses in Nigeria operated in naira, and fuel sales would be no exception.
Ukadike acknowledged the importance of closing the gap in the foreign exchange rate to ensure affordable petroleum products in Nigeria. He indicated that the pricing template for the products had not yet been released, as regulatory discussions and legislative processes were ongoing.
Stating that more oil marketers were registering with the refinery, Ukadike expressed optimism about having a domestic refinery that processed crude locally, contributing positively to the country’s economy.
Another major marketer confirmed that the pricing template for refined products had not been released, but discussions with regulators were ongoing. The marketer anticipated that the template would be in naira, considering the recent meetings with refinery officials.
The Dangote Petroleum Refinery, with a capacity to refine 650,000 barrels of crude oil per day, is located in the Lekki Free Trade Zone in Lagos. As of January 8, 2024, the refinery had received six million barrels of crude oil since its first delivery on December 12, 2023.
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