Local Oil Marketers Seal Deal with Dangote Refinery at N766 Per Liter

Lagos, Nigeria – In a significant development, major local oil marketers in Nigeria have agreed to pay N766 per liter to lift petrol from Dangote Petroleum Refinery, according to reports from reputable industry sources.

This agreement marks a major milestone in Nigeria’s oil and gas industry, as Dangote Refinery’s entry into the market is expected to reduce reliance on imports and enhance competition among oil marketers.

Background

Dangote Petroleum Refinery, a 650,000-barrels-per-day (bpd) facility, commenced production in May 2024. The refinery’s management had expressed commitment to supporting local oil marketers and ensuring seamless supply of petroleum products across Nigeria.

Key Players Involved

Major oil marketing companies involved in the agreement include:

1. 11 Plc (formerly Mobil Oil Nigeria)

2. Total Energies

3. AA. Rano

4. MRS Oil and Gas

5. Asharami

6. Rainoil

7. Prudent Energy

Breakdown of Estimated Cost

Industry sources reveal that the estimated cost of petrol from Dangote Refinery includes:

1. Ex-refinery price: N650 per liter

2. Transportation cost: N60 per liter

3. Other charges (taxes, levies): N56 per liter

Total: N766 per liter

Industry Implications

This development is expected to have far-reaching implications for Nigeria’s oil and gas industry:

1. Reduced petrol prices at the pump

2. Increased availability of petrol nationwide

3. Enhanced competition among oil marketers

4. Improved economic benefits for stakeholders

Expert Insights

“This agreement is a significant step towards Nigeria’s energy self-sufficiency,” said Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). “Dangote Refinery’s entry will stimulate competition, reduce imports, and enhance local capacity.”

Conclusion

The agreement between local oil marketers and Dangote Petroleum Refinery marks a significant milestone in Nigeria’s oil and gas industry. As the refinery ramps up production, stakeholders anticipate improved supply, reduced prices, and enhanced competition.