The Dangote Refinery is reportedly advancing talks with eight African countries, including South Africa, Angola, Niger, Chad, Burkina Faso, the Central African Republic, and Namibia, to establish fuel supply agreements and initiate fuel lifting.
Apart from Premium Motor Spirit (PMS), Dangote refinery has begun exporting diesel fuel to some African countries. The exports increased significantly in May, reaching nearly 100,000 barrels per day. Also, there has been an increase in aviation fuel exports from the refinery.
The chairman of the Dangote Group, Aliko Dangote, said at the onset of petrol production in September that the refinery is prepared to supply the local and regional markets with petrol, diesel, and other products like polypropylene.
“This refinery will change Nigeria and Africa’s oil and gas industry dynamics. Meeting the demands of the Sub-Saharan African region. We have good gasoline that guarantees the engines of vehicles last longer as the quality matches global standards,” Dangote noted.
Recently, Ghana announced its intention to buy fuel from the Dangote Refinery. Mustapha Abdul-Hamid, chairman of Ghana’s National Petroleum Authority, shared this information at the OTL Africa Downstream Oil Conference in Lagos, stating that the deal could save Ghana approximately $400 million monthly on fuel imports from Europe.
Currently, Dangote Refinery and the Nigerian petroleum marketers are at odds over pricing disputes, with the latter accusing the refinery of setting excessively high petrol prices.
Moreover, these marketers have shown a preference for importing gasoline rather than sourcing it from Dangote Refinery due to pricing issues.
As the Dangote Refinery reaches full production capacity and focuses on competitive pricing, Nigerian marketers may start opting for local sourcing, provided the refinery offers favorable terms, reliable supply, and efficient distribution.
