Business

S ’Africa, Seven Countries Queue To Lift Dangote Refinery Fuel

Published

7 months ago

November 9, 2024

The Dangote Refinery and Petrochemical is set to begin fuel exports to South Africa, Angola, and Namibia, according to The PUNCH.

A highly credible source, who confirmed this exclusively to one of our correspondents on Friday, said the management of the 650,000-barrel per-day capacity refinery was at advanced stages of talks with the countries to start lifting fuel.

It was gathered that four other African countries – Niger Republic, Chad, Burkina Faso and Central Africa Republic – had also started negotiation with the refinery.

The PUNCH was reliably informed that more countries were being expected to signify interest in lifting fuel from the refinery in the coming months.

Ghana was recently reported to have expressed interest in buying petrol from the $20bn Lekki-based refinery.

The Chairman of the National Petroleum Authority, Ghana, Mustapha Abdul-Hamid, said the arrangement with Dangote refinery would end his country’s monthly $400m fuel imports from Europe.

“I can confirm to you that talk is actually at advance stage with Ghana, Angola, Namibia and South Africa, while initial discussion is coming up with Niger, Chad, Burkina Faso and Central African Republic,” the source said.

When asked why marketers are insisting on not buying from Dangote despite the refinery’s capacity, the source said the dealers had hidden agenda.

“However, between now and January 2025, their plan would be exposed. Dangote refinery remains the hope of this country for a sustainable supply of petrol and the refinery has the capacity to serve the entire country,” the source added.

Meanwhile, local marketers have resolved to import fuel from outside the country.

The Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria last week insisted on fuel importation after accusing the Dangote refinery of selling fuel to Nigerians at an exorbitant price.

The marketers are awaiting the approvals of the Central Bank of Nigeria and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to import cheaper petrol.

The marketers argued that importing more affordable petrol would offer relief for consumers still adjusting to the price surges following the removal of fuel subsidy.

However, to proceed, the marketers requested access to foreign exchange from the CBN, and permits from NMDPRA to ensure compliance with fuel quality and regulatory standards.

The NMDPRA has, however, refuted claims that IPMAN and PETROAN were allowed to obtain petrol import licence as associations.

An official of the NMDPRA, who spoke to our correspondent on condition of anonymity due to the sensitivity of the issue, said the agency could not approve the request of oil marketers to obtain import licence as an association, but based on individual requests.

The source added that individual application was the stipulated law and could not be shelved.

“The truth of the matter is that they can’t apply for petrol import licence as a body or association. Individual marketers have to apply by themselves before they can be granted that licence. They have to apply by themselves. We are not going to give the permit jointly so they can’t apply as an association.

“So, this also means that if individual marketers don’t apply for it, we can’t approve it.”

Responding, the National Public Relations Officer of PETROAN, Dr Joseph Obele, said the association applied for the import licence about one month ago through its newly incorporated trading wing.

He described Dangote as an “aggressive competitor” who would go to any length to monopolise the market.

“You should know that Dangote is just out to close all the doors and windows so that no person enters the market. He is determined to ensure that nobody enters the market as a competitor. We assure Nigerians that as soon as the regulatory agency approves our authority to import, this price of PMS that is causing pain to Nigerians right now will crash to the barest minimum.

“The product we are planning to import is one of the best products so far, far better than his (Dangote) own, but he is just telling Nigerians that any product that is coming into the country is not better than his own.

“We call on Nigerians to support the call for dismantling monopolies so that we can liberate the market; otherwise, we will remain in the trap we are. We are trapped at the moment; we are trapped with exploitation and the only way out of the trap is to dismantle every dimension of monopoly and we are calling on Nigerians to support us,” Obele said.
PUNCH

Business

JUST IN: Dangote Refinery Hikes Petrol Ex-depot Price

Published

3 hours ago

June 20, 2025

Editor

Nigerians may soon pay more for petrol as the Dangote Petroleum Refinery on Friday increased its ex-depot price for Premium Motor Spirit to N880 per litre, raising fresh concerns over fuel affordability and price volatility in the downstream sector.

Checks on petroleumprice.ng, a platform tracking daily product prices, and a Pro Forma Invoice seen by The PUNCH confirmed the hike, representing a N55 increase from the previous rate of N825 per litre.

The increment would ripple across the entire fuel distribution chain, likely pushing pump prices above N900/litre in some parts of the country, especially in areas far from the distribution hubs.

The hike comes despite global crude prices falling. Brent crude dipped by 3.02% to $76.47, WTI fell to $74.93, and Murban dropped to $76.97 on Friday. The decline in benchmarks offers little relief due to persistent fears of sudden supply disruptions.

The refinery has increased its reliance on imported U.S. crude and operational costs amid exchange rate instability, which adds to its pricing pressure.

On Thursday, the President of the Dangote Group, Aliko Dangote, said his 650,000-barrel capacity refinery is “increasingly” relying on the United States for crude oil.

This came as findings showed that the Dangote Petroleum Refinery is projected to import a total of 17.65 million barrels of crude oil between April and July 2025, beginning with about 3.65 million barrels already delivered in the past two months, amid ongoing allocations under the Federal Government’s naira-for-crude policy.

Dangote informed the Technical Committee of the One-Stop Shop for the sale of crude and refined products in naira initiative that the refinery was still battling crude shortages, which had led it to resort to imports from the United States.

On Monday, the president of the Petroleum and Natural Gas Senior Staff Association of Nigeria, Festus Osifo, accused oil marketers of exploiting Nigerians through inflated petrol prices, insisting that the current pump price of PMS should range between N700 and N750 per litre.

He criticised the disparity between falling global crude oil prices and the stagnant retail price of petrol in Nigeria.

“If you go online and check the PLAT cost per cubic metre of PMS, convert that to litres and then to our Naira, you will see that with crude at around $60 per barrel, petrol should be retailing between N700 and N750 per litre.”

He asserted that if Nigerians bear the brunt of higher fuel costs, they should be allowed to enjoy the benefit of low pricing.

His forecast of increased costs now appears spot on, considering the latest developments.

Marketers are already adjusting. Depot owners and fuel distributors in Lagos and other cities anticipate a domino effect, with new price bands expected to follow Dangote’s lead.

Many had held back pricing decisions since Tuesday, when the refinery halted sales and withheld fresh PFIs. The delay fueled speculation, allowing opportunistic price hikes across various depots.

Business

Naira Appreciates At Official Market

Published

4 weeks ago

May 24, 2025

Editor

The Naira, which has seen steady appreciation against the Dollar all week, closed stronger on Friday, trading at ₦1,580.44 in the official forex market.

Data from the Central Bank of Nigeria’s website show the Naira gained ₦4.51k against the Dollar on Friday alone.

This marks a 0.28 per cent appreciation from Thursday’s closing rate of ₦1,584.95 in the official foreign exchange window.

The local currency maintained consistent strength throughout the week, recording gains daily.

On Monday, May 19, it traded at ₦1,598.68; on Tuesday, at ₦1,590.45; and on Wednesday, at ₦1,584.49.

These gains suggest increased investor confidence and improved forex supply, contributing to the naira’s performance.

Meanwhile, the CBN, at its 300th Monetary Policy Committee meeting held Monday and Tuesday, retained the Monetary Policy Rate at 27.5 per cent.

Business

BREAKING: Again, Dangote Refinery Cuts Petrol Price

Published

4 weeks ago

May 22, 2025

Editor

The Dangote Petroleum Refinery has announced a nationwide reduction in the pump price of Premium Motor Spirit (PMS), commonly known as petrol, with new prices now ranging between ₦875 and ₦905 per litre, depending on location.

The ₦15 per litre cut applies across all regions and partner fuel stations, and was confirmed via an official announcement posted on Dangote Refinery’s social media channels on Thursday.

Major marketers participating in the new pricing regime include MRS, Ardova, Heyden, Optima Energy, Techno Oil, and Hyde Energy — partners in the distribution of Dangote-refined products.

Under the previous pricing structure, Lagos residents paid ₦890 per litre, while prices reached ₦920 in the North-East and South-South regions. With the latest adjustment, Lagos now pays ₦875 per litre, while the North-East and South-South will see prices drop to ₦905.

A regional breakdown of the revised prices is as follows: Lagos: ₦875, South-West: ₦885, North-West & Central: ₦895, North-East & South-South: ₦905 and South-East: ₦905.

In its announcement, Dangote Refinery encouraged consumers to purchase fuel only from authorised partner stations and urged the public to report any cases of non-compliance via its official hotlines: +234 707 470 2099 and +234 707 470 2100.

“Our quality petrol and diesel are refined for better engine performance and are environmentally friendly,” the company said.