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Nigeria Fuel Marketers Seek Talks with Dangote Refinery to Guarantee Diesel and Petrol Supply

Major Nigerian oil marketing companies under the Independent Petroleum Marketers Association of Nigeria (IPMAN) are planning crucial talks with the management of the huge $20 billion Dangote Petroleum Refinery.

The purpose is to ensure steady supply and distribution of refined fuel products from the 650,000 barrel-per-day Lagos facility, scheduled to begin output this month.

IPMAN seeks long-term guaranteed diesel and petrol supply deals with what will become Nigeria’s largest refinery. It has the capacity to meet over 40% of national demand and reduce costly imports when fully operational.

Dangote Refinery Targets Initial Diesel and Jet Fuel Production

As reported last December, the refinery aims to first produce diesel and aviation jet fuel starting in mid-January 2024.

Gasoil and JetA1 output would rely on an initial 6 million barrel shipment of Bonny Light crude received in recent months.

Full-scale gasoline production awaits further crude delivery instalments over the coming weeks. Officials indicated that “maybe by the second week” of this month, critical diesel output could come on stream.

Aviation fuel and later gasoline would follow in sequence as inventory stocks built up.

IPMAN Deputy Leader Confirms Talks Are Ongoing

Contacted about marketing negotiations, IPMAN Deputy National President Zarma Mustapha confirmed his organisation’s intentions:

“We intend to engage them. We’ve not engaged with them yet, but it is our intention to engage them soon.”

Mustapha said IPMAN expects guaranteed supply from both Dangote and the revived Port Harcourt refinery. The two plants would finally end Nigeria’s full import dependency when operating at capacity.

He also raised doubts over whether pump prices for consumers would drop substantially despite eliminating importer premiums.

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