Nigeria’s downstream petroleum sector is gradually tilting under the firm control of Dangote Refinery as 16 marketers have joined the list of distributors willing to sell its Premium Motor Spirit (PMS), commonly known as petrol, which the management has reduced to N840 from its ex-depot price of N880 per litre, under the new distribution initiative which begins August 15.
New marketing companies that have joined Dangote’s distribution network ahead of its August 15 new distribution strategy are TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd., Virgin Forest Energy, Sixxco Oil Ltd., N.U. Synergy Ltd., and Soroman Nigeria Ltd. Others include Jezco Oil Nigeria Ltd., Jengre, Cocean, Kifayat, Triumph Golden, Sifem Global, Riquest, and Mamu Oil.
The new additions join the existing partners that include MRS, Heyden, Ardova (AP), Hyde, Optima, and Techno Oil and are expected to reflect the new pricing at their retail outlets.
The refinery recently announced that it would distribute petroleum products free of logistics expenses nationwide to willing marketers and large quantity buyers beginning from August 15, following its investment of over N720 billion to deploy 4,000 Compressed Natural Gas-powered trucks in an initiative expected to save Nigerians over N1.7 trillion annually.
This initiative which has put the Dangote Refinery at loggerheads with Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), a coalition of licensed depot marketers, is attractive to TotalEnergies and others because it will save them logistics costs.
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PETROAN warned the move by the Dangote Refinery could destroy thousands of businesses and create dangerous private monopoly.
Dangote Group’s spokesperson, Anthony Chiejina, disclosed the additional marketers while confirming the price adjustment in Lagos, stating: “PMS price has been reduced from N880 to N840 per litre effective 30th June.”
The previous increase to N880 per litre had followed global crude oil market volatility, particularly during the 12-day geopolitical crisis in the Middle East, which pushed crude oil prices to nearly $80 per barrel.
This nationwide distribution, according to the management, will see the refinery absorb over N1.07 trillion annually in fuel logistic costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability, the mega refinery said.
The initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation.
From August 15, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers, the company said earlier.
From August 15, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers, the company said earlier.
The increase in the list of distributors for the products show that Dangote Refinery, the largest single-train refinery in the world, continues to expand its domestic fuel distribution footprint, offering competitive pricing and improving access to refined products across Nigeria.
The refinery, recently announced that it has invested over N720 billion to implement its initiative of deploying 4,000 Compressed Natural Gas-powered trucks for the nationwide distribution of petroleum products, saying it is expected to save Nigerians over N1.7 trillion annually.
