Oil marketers expressed their ongoing anticipation for the delivery of refined petroleum products from the Dangote Petroleum Refinery, despite the facility’s production launch four weeks ago.
The commencement of production for Automotive Gas Oil (diesel) and aviation fuel at the multi-billion dollar plant was announced by Dangote Refinery on January 12, 2024. A statement from Aliko Dangote, President of Dangote Group, credited President Bola Tinubu for his pivotal role in realizing the project, alongside the support of various Nigerian regulatory bodies and the populace.
However, despite the initial fanfare, independent and major oil marketers reported on Monday that no deliveries had yet been made from the refinery. Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria, confirmed that they had not received any communication from the refinery regarding product availability.
In a report published on February 8, 2024, it was revealed that regulatory approvals were still pending, hindering the refinery’s plans to release aviation fuel and diesel to the market. Sources within the Nigerian Midstream and Downstream Petroleum Regulatory Authority disclosed that the approval process was ongoing, emphasizing the need to ensure product quality and compliance with specifications before market release.
Moreover, oil marketers highlighted that commercial terms for product supply had not been finalized, further delaying the distribution process. Clement Isong, Executive Secretary/CEO of the Major Energies’ Marketers Association of Nigeria, reiterated the importance of clarifying commercial terms to facilitate smooth transactions.
Despite the challenges, Maigandi assured the public that the supply shortage in the downstream oil sector was being addressed, attributing visible queues at filling stations to logistical issues rather than a scarcity of products. He emphasized ongoing negotiations with the Nigerian National Petroleum Corporation (NNPC) to secure direct allocations for independent marketers, aiming to streamline the distribution process and alleviate supply constraints.
As discussions continue between stakeholders, Maigandi remained optimistic that the queues would dissipate in the coming days as marketers work to replenish stock from available depots, ensuring uninterrupted access to petroleum products for consumers across the country.
