The $20 billion worth Dangote Petroleum Refinery has embarked on the sale of Automotive Gas Oil, commonly known as diesel, to oil marketers across Nigeria.
This move has raised hopes for a potential transformation in the country’s fuel market dynamics.
Confirming the development, Abubakar Maigandi, the National President of the Independent Petroleum Marketers Association of Nigeria, stated, “They started pumping out diesel to marketers since last week. They also promised to sell aviation fuel soon.”
He further expressed confidence that the influx of diesel from the Dangote Refinery would lead to a significant reduction in diesel prices, which recently soared to about N1,700 per liter.
A senior management official of the Dangote Refinery also confirmed the commencement of diesel sales to marketers and hinted at the imminent release of Premium Motor Spirit, popularly called petrol, into the market.
The refinery’s journey to releasing refined products into the market has been met with challenges, including regulatory hurdles. Despite facing delays in regulatory approvals, the refinery initiated the production of refined petroleum products in January.
Earlier announcements from the Dangote Refinery indicated plans to produce diesel and aviation fuel, with Aliko Dangote expressing gratitude to President Bola Tinubu and regulatory bodies for their support.
Dangote emphasized the significance of the project, stating, “This production, as witnessed today, would not have been possible without [President Tinubu’s] visionary leadership.”
With a nameplate capacity of 650,000 barrels per day, the Dangote Refinery’s operation is poised to transform Nigeria from a fuel importer to a net exporter in the West African region, potentially reshaping the industry’s power dynamics.