Marketers of petroleum products have indeed lifted a substantial amount of diesel and aviation fuel (Jet A1) from Dangote Refinery, totaling 518,500 metric tonnes . This accounts for a significant 60% of national truck-outs over the past five months. Dangote Refinery has been making headlines with its milestones, including its first jet fuel export to Europe in May 2024 . The refinery has also been impacting prices with recent reductions in diesel and aviation fuel prices . Its influence extends to the European oil and gas industry, with its jet fuel cargo being transported to Rotterdam .
According to documents from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), independent local marketers lifted a significant amount of petroleum products from Dangote Refinery between April and September. The marketers, including:
- Asharami
- MRS Oil and Gas
- AA Rano
- Rainoil
- Prudent
- NIPCO
- Aym Shafa
- Danmarna
lifted a total of:
· 489,500 metric tonnes of diesel
· 29,000 metric tonnes of aviation fuel (Jet A1)
for distribution across various Nigerian ports. This represents a substantial portion of the national truck-outs, highlighting the significant impact of Dangote Refinery on the local petroleum market
The documents from NMDPRA also revealed the distribution pattern of the diesel shipments:
· Lagos: 17 shipments
· Warri: 6 shipments
· Port Harcourt: 2 shipments
· Calabar: 1 shipment
Olufemi Adewole, Executive Secretary of DAPPMAN, emphasized the importance of transparency in the sector, stating:
“The sector needs to operate transparently in a manner that allows all stakeholders to thrive and contribute significantly to the quest of ensuring availability, reliability, and accessibility of petroleum products nationwide.”
This highlights the need for a transparent and collaborative approach to ensure the efficient distribution of petroleum products across Nigeria, benefiting all stakeholders and ultimately, the consumers.
Olufemi Adewole, Executive Secretary of DAPPMAN, clarified that the association did not boycott Dangote Refinery’s petrol, contrary to reports. He explained that petroleum marketers were still awaiting government clearance on the modalities for offtaking petrol from the refinery.
Adewole emphasized DAPPMAN’s commitment to meeting Nigeria’s energy needs and promoting a competitive market, stating:
“DAPPMAN… believes firmly in meeting Nigeria’s energy needs, and remains aligned to calls for the nation not to end up in a monopoly, which will only jeopardize our economic growth and development.”
This indicates that DAPPMAN supports a fair and competitive market, ensuring that Nigeria’s energy needs are met without relying on a single supplier, which could hinder economic growth.
Olufemi Adewole, Executive Secretary of DAPPMAN, highlighted that the trading of petroleum products globally hinges on two crucial factors:
- Price
- Quality
This emphasis on price and quality underscores the importance of:
- Competitive pricing to ensure affordability and profitability.
- High-quality products to meet international standards and safeguard consumer interests.
Adewole’s statement aligns with DAPPMAN’s advocacy for a level playing field, transparency, and fair market practices in Nigeria’s petroleum industry.
Key implications:
- Market dynamics: Price and quality drive market competition.
- Consumer protection: Quality assurance safeguards public health and safety.
- Economic growth: Competitive pricing promotes economic development.
By prioritizing price and quality, DAPPMAN aims to foster a vibrant and sustainable petroleum market in Nigeria.
