Price of fuel has reduced in most filling stations after the Dangote Refinery resumed the supply of Automotive Gas Oil (AGO), otherwise known as diesel, and Aviation fuel, also known as Jet A-1 to product marketers in Nigeria.
The head of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, told Reuters that local oil marketers set the price at N1,225 per litre for diesel after securing a bulk purchase agreement for a minimum load of one million litres.
He said the association’s members control about 150,000 retail stations across Nigeria.
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 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. In fact, 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, confirmed that the refinery had started the sale of diesel to dealers, adding that the plant started dispensing the product last Wednesday.
Asked if 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.”
Also, the Executive Secretary of the smaller Depots and Petroleum Products Marketers Association of Nigeria, Femi Adewole, said the association’s members are seeking letters of credit to buy petroleum products from Dangote.
