KEY POINTS
- Oil marketers will start loading petrol from the Dangote refinery next week.
- The daily supply from the refinery is expected to be 25 million litres.
- Deregulation in Nigeria’s oil sector is now in full effect, boosting competition.
Oil marketers in Nigeria are set to start loading Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery starting next week.
This marks a significant shift in the country’s oil supply chain, as marketers send trucks to the refinery to begin lifting petrol.
Although, Alhaji Aliko Dangote has recently announced that the Nigerian National Petroleum Corporation (NNPC) would be the only entity allowed to load petrol from the refinery. However, many marketers have already begun preparations to load their trucks, with others set to follow in the coming days.
New era of deregulation
Punch reported that a source within the industry revealed that several marketers are also planning to import petrol to stimulate market competition.
“We are gearing up for a price of around N1,200 per litre, even from depots,” the source said. This reflects the ongoing market adjustment as suppliers move away from reliance on the NNPC.
Marketers prepare for supply from Dangote Refinery
While some marketers have already dispatched trucks to the Dangote refinery, others expect to load fuel starting next week.
Additional vessels carrying imported petrol are expected to arrive within 10 days, further boosting supply. “Our imports should arrive soon, and we’re working with both Dangote and imports,” a marketer confirmed.
In recent weeks, the Minister of State for Petroleum Resources, Heineken Lokpobiri, announced that the downstream oil sector had been fully deregulated. He reassured Nigerians that with increased supply, fuel prices would stabilize.
This comes after the NNPC raised fuel prices to as high as N897 per litre in some areas.
What to Expect Next
As the Dangote refinery gears up to distribute petrol, key players in the oil industry are focusing on negotiations. While discussions are still ongoing, it is clear that the Dangote refinery will play a major role in the future of Nigeria’s fuel market.
