In a strategic move to strengthen Nigeria’s domestic fuel supply, oil marketers have entered into an agreement with the Dangote Refinery to supply at least 28 million litres of petrol daily for the next six months.
This agreement, finalized over the weekend, comes as the refinery announces a reduction in ex-depot petrol prices, marking a significant shift in Nigeria’s fuel distribution landscape.
The agreement, signed at a stakeholders’ meeting in Abuja, aims to significantly boost domestic petrol supply.
However, under the terms of the deal, Dangote refinery will provide a daily supply of 28 million litres of petrol.
Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have agreed to cease the importation of petrol unless there is a shortage from the Dangote refinery. This marks a crucial step towards reducing reliance on imported fuel and ensuring stable supply within the country.
The Nigerian National Petroleum Company Limited (NNPC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Edo Refinery were also part of the agreement, highlighting the collaborative effort to strengthen Nigeria’s oil and gas sector.
According to Dr. Joseph Obele, spokesperson for PETROAN, the deal is expected to provide relief to Nigerian consumers by stabilizing fuel prices and ensuring uninterrupted supply.
Dangote Refinery Cuts Petrol Price
Meanwhile, in a show of appreciation, Dangote refinery also reduced the ex-depot price of petrol from N990 per litre to N970 per litre. This price adjustment is part of the refinery’s efforts to give back to Nigerians for their continued support.
The reduction, though modest, is expected to have a ripple effect on the retail price of petrol, offering some respite to consumers facing high fuel costs.
The refinery’s decision to lower the price comes as a recognition of the need to ease the burden on Nigerians amid rising living costs. It underscores Dangote’s commitment to ensuring affordability and availability of petrol to the wider public.
No More Petrol Imports, Says PETROAN
With the new arrangement in place, oil marketers have committed to discontinuing petrol importation, with exceptions only in cases of supply gaps. This move is expected to reduce the pressure on Nigeria’s foreign exchange reserves, which have been strained by the cost of fuel imports. It also aligns with the government’s policy to reduce dependency on imported petroleum products.
Also, the shift to domestic supply from Dangote refinery is expected to positively impact the Nigerian economy by encouraging local refining capacity and ensuring a more stable and sustainable supply of petrol across the nation.
This landmark deal marks a new chapter in Nigeria’s efforts to boost self-sufficiency in petroleum products.
