Oil marketers stated on Monday that refined petroleum products from the $20 billion Dangote Petroleum Refinery will be sold in naira rather than US dollars, as some had anticipated.
Dealers in the downstream oil industry also reported that the registration procedure for marketers at the refinery was still underway, as several businesses continued to register with the facility.
It was also reported that officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority were meeting with the refinery’s management to finalize the price formula for goods generated by the plant.
On January 12, 2023, the Dangote Petroleum Refinery announced the commencement of production of Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel.
The President, Dangote Group, Aliko Dangote, had in a statement issued by the firm, said, “We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals. This is a big day for Nigeria. We are delighted to have reached this significant milestone.
“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game changer for our country, and I am very fulfilled with the actualisation of this project.”
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 produced by the plant. The seven major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.
The refinery would supply fuel to about 150,000 retail outlets operated by the Independent Petroleum Marketers Association of Nigeria following a meeting between the management of the refinery and executives of IPMAN.
But some Nigerians have expressed concern over the supply of crude to the plant in dollars, and whether this could make the managers of the refinery to sell refined products in dollars, since the plant is located in the free trade zone.
The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.
