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Breaking : Oil marketers demand N700 to N850/litre of diesel from Dangote refinery, as product produce locally in Nigeria
Oil marketers have called for a downward review in the pump price of the Automotive Gas Oil, popularly called diesel, being produced by the Dangote Petroleum Refinery to between N700 and N850/litre, as operators plan to meet managers of the refinery next week.
The largest downstream marketing association, the Independent Petroleum Marketers Association of Nigeria, which made the call in an interview with The correspondent,said the N1,225/litre diesel price from the indigenous refinery was high because the commodity was produced in Nigeria and not imported.
The Petroleum Products Retail Outlets Owners Association of Nigeria also called for a reduction in the price of Dangote diesel.
The groups called for the intervention of the Federal Government and urged the managers of the refinery to consider the high cost of logistics required to transport the product from Lagos where the refinery is located.
The oil marketers pointed out that the product is being landed in Nigeria by some importers at N1,250/litre following the appreciation of the naira against the dollar, adding that this should be another reason why the Dangote refinery that produces diesel in Nigeria should cut down its price.
According to the oil marketers, diesel produced at the Dangote refinery has no vessel cost, import charges, and other costs associated with the costs associated with the importation of the commodity into Nigeria.
This came as it was gathered that the marketers under the aegis of IPMAN and Independent Petroleum Marketers Association of Nigeria, and PETROAN held separate meetings on Monday to deliberate on the pricing of petroleum products from the refinery, as well as other issues.
The $20bn refinery started pumping out diesel to the domestic market the previous Wednesday (March 27, 2024).
The report stated that the refinery sold a minimum of one million litres to each registered oil marketer that got the product from the plant since it commenced diesel sale.
Officials of the multi-billion dollar plant and oil dealers had confirmed that the product was dispensed to marketers at between N1,225/litre and N1,300/litre depending on the volume of purchase.
Reacting to the cost of the commodity during an interview with our correspondent on Monday, the National Public Relations Officer, IPMAN, Chief Chinedu Ukadike, commended the refinery for the commencement in the release of refined products.
He, however, urged the managers of the plant to review the cost of the product downward, providing reasons why the price of Dangote diesel should be cheaper than what was imported.
Ukadike said, “During the construction of the Dangote refinery, we supported and welcomed it. Also, it was our prayers that an indigenous refinery be opened so that it will limit the expenses of logistics in terms of importation, clearing, and other activities associated with bringing products into the country.
“These are some of the hurdles that necessitated the high cost of AGO or diesel being imported into Nigeria. So now that a private refinery with a very high capacity has started producing petroleum products here in Nigeria, we would have appreciated that its products being sold to Nigerians will be cheaper than the landing cost of imported products.
“The dollar is currently about N1,270 to N1,290 and it is coming down. So if the dollar is a determinant factor in terms of the importation of petroleum products and diesel is sold by those companies that imported at N1,300/$, I believe that Dangote refinery should not measure the price of its diesel with the parameter of the forex.”
The IPMAN PRO stated that forex should not be the benchmark for the price of Dangote refinery’s diesel.
“Also, some other expenses on the cost of diesel produced by the refinery have been waived. So those expenses should reflect on the price of the product. The refinery is in Lagos, so there is no vessel voyage cost and this should be deducted from the price Dangote is giving us.
“Other marketers who imported their products are landing it at between N1,200 and N1,250/litre since the drop in forex. So Dangote should be giving us his product at around N700 to N850/litre since he is producing it here.
“When we buy at that price, it will further strengthen the naira, minimise profiteering and reduce the cost of goods and services that are transported using diesel. If you minus the cost spent on vessels, importation charges, and the cost of foreign exchange to some extent, the price of diesel will drop,” Ukadike stated.
He said oil marketers would also submit their price request to the Dangote refinery next week, adding that IPMAN would seek the intervention of the Federal Government on the matter.
“We are trying to seek a meeting with the refinery’s commercial department. I just came out of a meeting to speak with you, where we are discussing how to be able to persuade them to review their prices and also ask the government to intervene,” he said.
When asked to state when the association would meet with the refinery, Ukadike replied. “By next week we should get an appointment. That should be after the Sallah.” some
members of IPMAN had started purchasing the product from the refinery at the N1,225/litre price, though the association had stated that it would seek its price from the managers of the refinery.
“They started pumping out diesel to marketers last week. They also promised to sell aviation fuel soon. Some of my members confirmed this to me after making the purchase,” the National President, the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, had told our correspondent last week.
He added, “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.
“They are selling at N1,225/litre and the minimum volume they are giving is one million litres per marketer. Also, they assured us that they will release more products, but for now this (diesel) is what they are starting with. So we are expecting them to release PMS anytime from now.”
Maigandi had said the move by Dangote would definitely lead to a crash in diesel price, as the commodity rose to a high of about N1,700/litre recently.
“The price of diesel is going to fall because of the release of products from Dangote refinery. It is already coming down in Lagos,” Maigandi stated.
Another oil marketer, who is the Chief Executive, AF Ralph Oil and Gas Ventures, Dr Ralph Arokoyo, had also confirmed that the refinery started the sale of diesel to dealers, adding that the plant started dispensing the product about two weeks ago.
Asked if the Dangote refinery had started supplying diesel to the market, Arokoyo replied, “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.”
The President, the Petroleum Products Retail Outlets Owners Association of Nigeria, Billis Gillis-Harry, also stated on Monday that the cost of diesel from the Dangote refinery should be reduced.
He said, “PETROAN has an agreement with Dangote to supply to us at N1,200, but we will still request a downward review. We have over 19,000 members and over 6,800 people are active and ready to do business. So we need to talk about so many issues.
“First of all, the logistics from Lagos to Port Harcourt, Calabar, Warri, Zamfara, and other locations is not very easy. So those in Lagos can take the N1,200/litre price because their cost of logistics is low, but this is not so for dealers outside Lagos.
“So we will certainly still engage with them on how prices will come down. However, the good news is that they have rolled out products and we salute and congratulate them, especially the Executive Director, Commercial, Mr Rabiu Umar, for his courage in making sure Nigeria is wet with refined products.”
Gillis-Harry, however, stated that the refinery would have to recoup the funds used in constructing it, as several billions of dollars were borrowed to develop the plant.
Cautious optimism among manufacturers as Dangote begins diesel sale
Diesel price drops as Dangote sells N1,225/litre, supplies petrol May
“The refinery has collected billions of dollars as loans to put itself up. It must start to work to pay back these loans. And the only way to get back this money is by producing and selling, as well as exporting.
“Now he has started with domestic sales. So organisations like ours will have to sit down with them and work out the details and this will enable us to know exactly what their cost elements are. We want to sell and they want to produce,” he stated.
The PETROAN president said his association would not want to speak on the proposed cost of petrol that should come from the Dangote refinery until the plant starts producing the commodity for the domestic market.
“You can’t even talk about price when they’ve not started producing. Yes, they have discussed with PETROAN that they would produce PMS, but they have not started producing,” he said.
When told that the refinery was working to release PMS in May, Gillis-Harry said, “They’ve not started producing. So we won’t work on projections. Let them produce first and we will then know what their input, output, and pricing are. That is the only time we can talk about what prices they should sell.
“Dangote refinery has informed PETROAN that they will produce PMS but we await their production, and then we will know the inputs of their production before we talk about the pricing. We can’t tell them what to sell now.”
Officials of the multibillion-dollar refinery decided to stay mute despite several attempts to get their input on the matter.
However, a senior official at the Dangote refinery confirmed last week that the plant had started the sale of diesel to marketers, as the source noted that Premium Motor Spirit, popularly called petrol, would soon be released to the market.
“The product (diesel) is everywhere and they (marketers) are accessing it with ease. The product has been on sale to marketers since last week and the transactions have been better.
“The price of the product in various locations of the country will come down, and it is already coming down in many parts of Lagos since we started releasing products to marketers,” the official, who spoke on condition of anonymity due to lack of authorisation to speak on the matter, had stated.
The Dangote refinery has faced a series of hurdles as it strives to release refined products into the market after it was officially inaugurated by former President Muhammadu Buhari in May last year.
On February 8, 2024, our correspondent 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 stated that weeks after the January 31 timeline set by the management of Africa’s largest refinery to begin the sale of its petroleum product in the local market, the refinery was still battling to cross the hurdles of the several layers of regulatory approvals.
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.
Aliko Dangote, in a statement issued by his firm at the time, thanked President Bola Tinubu for his support, encouragement, and thoughtful advice towards the actualisation of the project.
Dangote also thanked the Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, NMDPRA, and Nigerians for their support and belief in the historic project, as he revealed that the facility would pump out diesel and aviation fuel in January, subject to regulatory approvals.
He said, “We thank President Bola Tinubu for his support and for making our dream come true. This production, as witnessed today, would not have been possible without his visionary leadership and prompt attention to detail.
“His intervention at various stages cleared all impediments thereby accelerating the actualisation of the project. We also thank the NNPC, NUPRC, and NMDPRA for their support. These organisations have been our dependable partners in this historic journey.
“We also thank Nigerians for their belief and support in this project. We have started the production of diesel and aviation fuel, and the products will be in the market within this month once we receive regulatory approvals.”
The refinery, Africa’s largest with a nameplate capacity of 650,000 barrels per day, was built on a peninsula on the outskirts of the commercial capital Lagos.
Nigeria has for years relied on expensive imports for nearly all the fuel it consumes but the $20bn refinery is set to turn it into a net exporter of fuel to other West African countries, in a huge potential shift of power and profit dynamics in the industry.
The commencement of diesel sale in Nigeria by the plant is not its first refined products sale, as The PUNCH reported in February that the refinery issued tenders to sell two fuel cargoes for export.
This was the first from the new refinery, as the report stated that this was confirmed by trading sources with knowledge of the matter who spoke to Reuters at the time.
Nigeria has for years relied on expensive imports for nearly all the fuel it consumes but the $20bn refinery is set to turn it into a net exporter of fuel to other West African countries, in a huge potential shift of power and profit dynamics in the industry
Reuters had stated in its report that Dangote declined its request for comment. The oil firm also remained mute to several inquiries by The PUNCH at the time.
The report stated that the first cargo was 65,000 metric tonnes of low-sulphur straight-run fuel oil, which Dangote awarded to Trafigura, which was due to load at the end of February, three of the sources said, according to Reuters, as it added that Trafigura declined to comment at the time.
At least one refiner said they had been offered the cargo by Trafigura without elaborating further.
The second tender was for about 60,000 tonnes of naphtha, three other sources had stated. Two of them added that the tender closed on February 15. Loading details were not immediately available at the time.
Sources had also told Reuters that the refinery was preparing to deliver its first fuel cargoes to the domestic market within weeks.
The two fuels on offer were typical products of running light sweet crude through a crude distillation unit in a refinery without further upgrading capacity.
The refiner began buying crude in December last year and Nigerian National Petroleum Company Limited has been the main supplier.
Dangote has also purchased some US oil and reportedly received two million barrels of US WTI Midland in early March, according to LSEG and Kpler ship tracking.
……Era of shared prosperity begins, Tinubu assures
Nigeria has reached a turning point in its economic recovery, President Bola Ahmed Tinubu declared.
He said the period of painful reforms has accomplished its purpose, and the country is now entering what he described as an “age of prosperity”.
Tinubu, in his Independence Day address to Nigerians marking the country’s 66th anniversary this morning, said the central task of his administration would henceforth shift from correcting structural economic distortions to ensuring that the gains of the reforms translate into lower living costs, jobs, increased production and broadly shared prosperity.
“The age of reform has done its work. Now begins the age of prosperity.
“An age in which the promise of this great nation must finally become the lived experience of Nigerians from all walks of life”, the President said.
He said the government’s immediate priority in the new phase would be to bring down the cost of living by reducing the cost of producing and transporting food and other goods consumed by Nigerians.
Tinubu, who likened the state of the economy his administration inherited in 2023 to a cancer patient requiring painful treatment, said the government had completed what he called the “emergency treatment” of the economy and repaired its foundations.
“My fellow Nigerians, we have reached a turning point.
“The emergency treatment is over. The foundation has been repaired. The central economic task before us has changed. For three years, our overriding purpose was to correct our nation’s course.
“Now, our purpose is simple: shared and widespread prosperity,” he said.
The President said the prosperity being envisaged was not merely about headline economic growth or improved statistics, but about creating conditions under which Nigerians could afford food and transportation, access education and healthcare, secure productive employment and confidently plan their future.
He said his administration would pursue increased agricultural production through mechanised irrigation, dry-season farming, improved access to seeds and fertiliser, greater mechanisation and investment in storage and transportation.
According to him, ongoing investments in roads, railways and ports would also reduce the cost of moving produce and manufactured goods from farms and factories to markets.
“Our logic is simple. When a farmer produces more cheaply, when fewer crops are lost between the farm and the market, when a manufacturer spends less on electricity, when a truck reaches its destination faster, and when the business environment fosters fair competition, all those savings will ultimately find their way into the price of goods in the market,” he said.
Tinubu said job creation, enterprise development and industrial expansion would also be placed at the centre of government policy, with greater emphasis on gas-powered industries, revival of manufacturing centres, digital connectivity and improved access to infrastructure and finance.
The President said the country must convert its huge youthful population into an engine of economic production by equipping young people with skills demanded by employers and creating conditions for Nigerian businesses to expand.
“I want to see more Nigerians making things. I want to see more Nigerian farms feeding our cities and supplying our factories. I want to see Nigerian businesses selling Nigerian goods to the whole world. I want young Nigerians building unicorns and creating opportunities for others here at home,” he said.
Defending the economic reforms undertaken since his assumption of office, Tinubu rejected calls for a reversal of some of the policies, particularly subsidies, arguing that the measures did not create Nigeria’s economic weaknesses but were introduced to confront them.
The President compared previous economic management approaches to administering painkillers to a cancer patient instead of treating the underlying disease.
“For too long, Nigeria’s leaders chose morphine while praying for a miracle that never came.
“They focused on symptoms while allowing the disease to take hold deep within the fabric of our society. We spent enormous sums sustaining inefficient arrangements that were never intended to last. We hid from difficult truths and passed the consequences from one generation to the next,” he said.
Tinubu acknowledged that the reforms imposed hardship on Nigerians, saying their “side effects were real,” but insisted that Nigerians must distinguish between what he described as the medicine and the disease.
“Our reforms did not create the weaknesses in our economy. They confronted them.
“Now, as certain influential but regressive voices would have us abandon the treatment and return ourselves to the abuse of addictive subsidies, we must resist their siren song. We must remember why we began this journey and how far we have already come,” he said.
The President said three and a half years after the reforms began, the country’s economic outlook had improved, citing economic growth of more than four per cent this year, contributions from both oil and non-oil sectors, declining oil theft, falling inflation, improved foreign reserves and greater stability in the foreign exchange market.
He also said Nigeria recorded its highest non-oil export revenue in 2025, exceeding $6 billion, adding that increased foreign direct investment and private sector activity reflected improving confidence in the economy.
While acknowledging that millions of Nigerians were still struggling with food, school fees, healthcare, transportation and other basic needs, Tinubu said the government would continue strengthening support for vulnerable households while pursuing policies capable of lifting people permanently out of poverty.
He said the National Social Register was being improved to ensure assistance reached those genuinely in need, while programmes such as the Nigerian Education Loan Fund and the Nigerian Consumer Credit Corporation, CREDICORP, were designed to broaden access to education and essential assets.
According to him, the government would also work with states and local governments to strengthen primary healthcare, basic education and other public services relied upon by low-income Nigerians.
“These programmes are not substitutes for prosperity. They are a bridge to aid our nation’s citizens on their path towards it. Our objective is not to manage poverty more efficiently.
“We will defeat it,” Tinubu declared.
He admitted that reversing decades of poverty, low productivity, inadequate infrastructure and weak institutions would take time, discipline, sustained economic growth and the creation of millions of productive opportunities.
“We cannot erase in four years what accumulated over generations. But we can change its course. We can build an economy that steadily lifts people out of poverty while ensuring that those who remain vulnerable are not abandoned along the way,” he said.
Reflecting on Nigeria’s 66 years of independence, Tinubu paid tribute to generations of Nigerians who had kept faith with the country despite war, military rule, economic crises, insecurity and political upheavals.
He also praised farmers, traders, teachers, entrepreneurs and members of the Armed Forces and security agencies, saying their sacrifices had sustained the country through difficult periods.
The President said Nigeria’s founding fathers fought not merely for a flag, anthem or international recognition, but for Nigerians to have the freedom to determine their destiny and build a country capable of providing opportunity, dignity and a better life.
He urged Nigerians not to retreat from the difficult choices already made, expressing confidence that the sacrifices of recent years would eventually translate into improved living standards.
“Nigeria has corrected its course. We have passed through our own Red Sea. This is not the time to look back. Let us go forward together, with faith in ourselves, faith in our country, and faith that the sacrifices we have made will yield their reward,” Tinubu said.
Describing the country’s desired destination as a “Promised Land” of abundance, opportunity and broadly shared prosperity, the President said the foundations for that future had already been laid.
“Our destination is in sight. Our foundations are strong. Our direction is clear. So let us go forward. No looking back,” he declared.
President Bola Tinubu has returned to Nigeria after spending about four weeks in Europe. Government
The presidential aircraft carrying the President landed at the Presidential Wing of the Murtala Muhammed International Airport at about 6:22 p.m. on Tuesday.
Journalists at the airport were restricted from taking visuals of the President’s arrival as the aircraft made its way to the terminal.
Tinubu departed Nigeria on August 30 for London, then travelled to Paris, where he held engagements with French President Emmanuel Macron, including a dinner. Government
His return marks the end of his extended stay abroad; the President is expected to participate in activities marking Nigeria’s 66th Independence Anniversary on October 1st.
President Bola Tinubu has unveiled an investment package of more than $7 billion for the development of the Ogun State Blue Marine Special Economic Zone and the Gateway Deep Seaport, describing the projects as a major step towards strengthening Nigeria’s maritime economy and attracting foreign investment.
In a statement by his Spokesman, Bayo Onanuga, on Thursday, the President spoke in Paris, France, during the signing of Memoranda of Understanding between the Ogun State Government and DP World, a global ports and logistics operator, for the development of the projects.
Tinubu assured domestic and foreign investors that the Federal Government would continue to provide regulatory clarity, policy stability and a predictable business environment to support long-term investments in Nigeria.
“The agreements before us bring together vision, expertise, capital and execution capacity. I particularly welcome DP World, one of the world’s leading port and logistics operators,” the President said.
He added that the Federal Government would provide the necessary regulatory and institutional support to ensure that the projects moved seamlessly from agreements to implementation.
According to the President, the agreements are expected to attract an initial investment of more than $7 billion into the Nigerian economy and create over 50,000 direct jobs when fully developed, alongside additional indirect employment opportunities.
Tinubu said the projects would also generate non-oil export earnings and contribute to Nigeria’s economic diversification.
“This is economic diversification made tangible. This is industrialisation made visible. This is Renewed Hope in action,” he said.
The proposed Gateway Deep Seaport at Ogun Waterside will have a four-kilometre berth and an 18-
metre draft. The facility is expected to help decongest the Lagos port corridor and ease pressure on the Apapa and Tin Can Island ports.
The president said the deeper draft would enable the port to accommodate larger vessels while providing a competitive gateway for trade within Nigeria and across the African Continental Free Trade Area.
He noted that the proposed Ogun State Blue Marine Special Economic Zone would cover about 10,000 hectares and would be integrated with the deep seaport to support manufacturing, processing, exports and logistics.
“The Gateway Deep Seaport is the critical infrastructure that will support the zone’s viability. A port moves cargo; a port integrated with a special economic zone helps to build an economy. Each reinforces the other,” Tinubu said.
He said the Federal Government would facilitate road, rail and power connectivity to the projects, while strengthening investment security and the maritime domain and removing unnecessary bureaucratic obstacles.
The president also linked the projects to the Lagos-Calabar Coastal Highway, describing the Ogun section of the road as a critical transport connection for the emerging industrial and maritime corridor.
“The Lagos–Calabar Coastal Highway is central to this corridor’s commercial viability,” he said, adding that the 28-kilometre Ogun section of the 700-kilometre highway was scheduled for completion before the end of the year.
Tinubu said the port and industrial zone would also form part of a wider strategic corridor linking the proposed Nigerian Navy Operating Base and Dockyard with the OK LNG Project.
The President commended Ogun State Governor Dapo Abiodun and his administration for securing the land and structuring the investment framework.
“I commend Governor Dapo Abiodun and the government and people of Ogun State for securing the land, structuring the investment framework and reducing project risks for global investors,” he said.
Governor Abiodun led the Ogun State delegation at the signing ceremony, which also included state commissioners and other senior officials.
Senior representatives of DP World, the Nigerian Ports Authority and SkyKapital were also present at the event.
Tinubu urged Ogun State and the investors to maintain the momentum created by the agreements and move quickly towards implementation.
“Nigeria lies at the heart of West African trade. Yet, our strategic advantage has been constrained by port congestion, inadequate draft capacity and logistics bottlenecks that increase the cost of doing business. These projects respond directly to those constraints,” he said.
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