Following the sale of Automotive Gas Oil, popularly called diesel, the price of the commodity has dropped from about N1,700/litre which it sold for a few weeks ago, to around N1,350/litre in some locations across the country.
This development follows the sale of the commodity by the Dangote Petroleum Refinery at between N1,225/litre and N1,300/litre, according to confirmation by officials of the multi-billion dollar plant.
Since the refinery started diesel sale, each registered oil marketer got a minimum of one million litres of the Automated Gas Oil (AGO).
The plant, as the report was gathered has concluded plan to start releasing Premium Motor Spirit to the domestic market in May this year.
While speaking on the evolving development, Abubakar Maigandi, the National President of Independent Markerters Association of Nigeria said, “They started pumping out diesel to marketers since last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making the purchases."
“So some of our marketers have started getting the product, but as an association we have not got the product yet, because we want to get the actual rate that it will be sold to us when we buy in bulk. However, they have started selling diesel because some of our marketers have started buying. The price of diesel is going to fall because of the release of products from Dangote refinery. In fact, it is already coming down in Lagos,” he stated.
Dr Ralph Arokoyo, the Chief Executive, AF Ralph Oil and Gas Ventures, also confirmed the sale of diesel to dealers by the refinery, adding that the plant started dispensing the product last Wednesday.
“Yes they have started. They started diesel sales last Wednesday and they have sold to many marketers including members of IPMAN and MEMAN (Major Energy Marketers Association of Nigeria), as well as other private registered independent dealers,” he said.
Recall that on February 8, 2024, The PUNCH reported that indications emerged that lingering regulatory approvals stalled Dangote Petrochemical Refinery’s plan to release aviation fuel (Jet A1) and diesel for sale in the Nigerian market in January.
The report had stated the refinery was still battling to cross the hurdles of the several layers of regulatory approvals, weeks after the January 31 timeline set by the management of Africa’s largest refinery to begin sale of its petroleum product in the local market. It stated that the development came after the refinery began the production of refined petroleum products at the expansive facility.
On January 12, 2024, Dangote refinery announced that it had commenced the production of Automotive Gas Oil, popularly called diesel, and aviation fuel or JetA1.
In a statement issued by his firm at the time, Aliko Dangote thanked President Bola Tinubu for his support, encouragement, and thoughtful advice towards the actualisation of the project.
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