Oil marketers have officially confirmed that they are set to begin lifting Premium Motor Spirit (PMS), also known as petrol, from the Dangote refinery starting next week. This marks a significant milestone for the Nigerian oil industry, as the long-anticipated operation of Africa’s largest refinery is finally coming into play. For many Nigerians, this could signal a new era in petrol supply, one that could reduce dependence on imported fuel while also adding competition in the market.
Reports from the oil marketers indicate that several of them have already dispatched trucks to the Dangote refinery, located in Lekki, Lagos, with some beginning to load as early as this Sunday. Others have made plans to have their tankers ready by next week. The refinery, valued at several billion dollars, is expected to significantly alter Nigeria’s fuel supply landscape. Meanwhile, some marketers have indicated that imported petrol will also be arriving in Nigeria before the end of the month, hinting that the local supply of fuel may soon improve, which could impact prices.
According to sources, vessels carrying imported petrol from several major marketers are expected to dock in Nigeria within the next ten days. This development further underscores the likelihood that fuel availability will increase, either through domestic production from the Dangote refinery or through continued imports, helping to meet the country’s fuel demands.
While the President of the Dangote Group, Alhaji Aliko Dangote, previously stated that for now, only the Nigerian National Petroleum Corporation (NNPC) would lift petrol from the Dangote refinery, it appears that private oil marketers are already positioning themselves to access fuel from the facility. The marketers have begun making preparations to load their trucks at the refinery, with initial reports suggesting that the daily supply from the plant will reach 25 million litres of petrol.
One major oil marketer, speaking anonymously, expressed excitement about the commencement of loading at the Dangote refinery, noting that the decision by the Nigerian government to fully deregulate the downstream oil sector has given marketers more control over fuel prices and supply. “The fact that we’re no longer at the mercy of NNPC means we have the freedom to source petrol from multiple avenues,” the marketer explained. “Next week, we’ll start loading from the Dangote plant, and a lot of other marketers are also making moves to bring in petrol from abroad. By the end of the month, we’ll be seeing a variety of sources for petrol in the market.”
One of the most significant changes brought about by the deregulation is the impact on pricing. Although there hasn’t been an official agreement on the price of petrol from the Dangote refinery, the marketer revealed that discussions are ongoing. “At this point, we are still finalizing the price. We estimate that it could be around N1,100 per litre, but that’s not fixed yet,” the marketer said. He also pointed out that the Nigerian market, long dominated by NNPC, is eager for alternatives. “A lot of people are frustrated with the NNPC’s monopoly, and they want to buy from other sources. So, even if the price from the Dangote refinery is around N1,200 per litre, there will be a strong market for it.”
The marketer also disclosed that several other major oil marketers are planning to import petrol to create competition in the Nigerian market. “We’re doing both—importing fuel and buying from Dangote. This is happening across the board. Most of the major players are bringing in products. Right now, there are about four different marketers whose vessels are expected to arrive in the next 10 days,” he said, noting that this level of activity is unusual but shows the impact of the newly deregulated market.
The deregulation of the oil sector, which was officially announced last week by Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, has allowed for a shift in market dynamics. In a statement, Lokpobiri explained that the government is no longer fixing the prices of petroleum products. “The market is deregulated, and we believe that with the availability of products, petrol prices will stabilize on their own. The key message for Nigerians is that there is no longer a fixed price for petrol. As long as there is enough supply, prices will adjust naturally,” he stated.
Lokpobiri’s statement followed the NNPC’s recent increase in petrol prices, with pump prices rising from N620 per litre to between N855 and N897, depending on the region. Despite this hike, many industry insiders believe that the influx of petrol from the Dangote refinery and other importers could stabilize prices in the long run.
Another dealer, speaking to reporters, also confirmed that everything is in place for the loading of petrol from the Dangote refinery to commence next week. However, there is still some uncertainty surrounding the involvement of NNPC. “I can’t speak on behalf of NNPC, but from our side, we’re set to start loading petrol from the refinery next week,” the dealer said. He also added that his company has been preparing for this for some time and is ready to proceed once the final logistical details are completed.
When asked whether NNPC would also be lifting petrol from the refinery, the dealer remained unsure, stating, “I don’t have any information about whether NNPC is ready to start loading from the refinery. But I can confirm that we will begin next week.”
This is consistent with statements from the Independent Petroleum Marketers Association of Nigeria (IPMAN), whose National President, Abubakar Maigandi, has affirmed that many marketers are taking steps to import fuel while also preparing to buy from the Dangote refinery. However, Maigandi did not disclose the price at which petrol would be sold from the new facility, explaining that discussions were still in progress. “Right now, we cannot give a specific price for petrol from Dangote or for imported fuel. What is important is that we now have options, and marketers are ready to take advantage of the newly deregulated market by sourcing fuel from various places,” he stated.
The spokesperson for the Dangote refinery, Tony Chiejina, had not responded to inquiries about the matter at the time the story was published. In addition, the spokesperson for NNPC, Olufemi Soneye, denied rumors that NNPC had already started loading petrol from the Dangote refinery. When asked to verify reports that NNPC was lifting petrol from the facility, Soneye simply responded, “That’s false.”
However, Soneye declined to answer additional questions regarding the pricing of PMS expected from the Dangote refinery or the cost of crude oil supplied by NNPC to the facility. This lack of clarity has led to speculation, but it appears that final decisions will soon be made as marketers and NNPC negotiate the next steps for pricing and supply.
Earlier reports suggested that the Dangote refinery and NNPC were scheduled to hold discussions on the pricing of petrol and crude oil supply. With the refinery’s strategic importance as Africa’s largest, and as Nigeria’s key source of locally refined petroleum products, these negotiations will likely have significant ramifications for the country’s fuel market in the months to come.