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Tag: Dangote Refinery

  • BREAKING: Dangote Refinery makes shocking revelation on IPMAN’s inability to lift petrol

    BREAKING: Dangote Refinery makes shocking revelation on IPMAN’s inability to lift petrol

    Dangote Refinery has made disclosure on the inability of Independent Petroleum Marketers Association of Nigeria (IPMAN) to lift Premium Motor Spirit (aka petrol/fuel) and other refined petroleum products directly from the refinery.

    TheNewsGuru.com (TNG) reports Dangote Refinery to have said the Nigerian National Petroleum Company (NNPC) Limited has not given approval for IPMAN to lift petrol directly from the refinery.

    Recall IPMAN had earlier disclosed experiencing difficulties loading refined products from the Dangote Refinery after Alhaji Aliko Dangote, Chairman of Dangote Refinery and Petrochemical Company called on retailers to come forward and pick petrol from the refinery.

    Dangote Refinery, in a statement on Thursday by Anthony Chiejina, Group Chief Branding and Communications Officer, clarified that it has not received any payments from IPMAN to purchase refined petroleum products.

    Chiejina, however, did confirm in the statement that IPMAN has made a payment through NNPC Limited but that NNPC has neither approved nor authorised Dangote Refinery to release petrol to IPMAN.

    The statement reads: “The Dangote Petroleum Refinery wishes to clarify that it has not received any payments from the Independent Petroleum Marketers Association of Nigeria (IPMAN) to purchase refined petroleum products.

    “Although discussions are ongoing with IPMAN, it is misleading to suggest that they (IPMAN Members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them.

    “Consequently, we cannot be held responsible for any payments made to other entities. The payment in mention has been made through the Nigerian National Petroleum Company Limited (NNPCL), and not us. In the same vein, NNPCL has neither approved, nor authorised us to release our Premium Motor Spirit (PMS) to IPMAN.

    “We would like to emphasise that we can meet the nation’s demand for all petroleum products, including petrol, diesel, and aviation fuel. At present, we can load 2,900 trucks per day and we have also been evacuating petroleum products by sea. We advise IPMAN to register with us and make direct payment as we have more than enough petroleum products to satisfy the needs of their members.

    “Furthermore, we believe it is instructive for all stakeholders to refrain from making unfounded statements in the media, as that could undermine the economic re-engineering efforts of His Excellency, President Bola Ahmed Tinubu.

    “Conducting business through public speculation is counterproductive and unpatriotic. In the interest of our country, we encourage all stakeholders to collaborate and heed the advice of President Tinubu, while promoting a unified approach, rather than engaging in media conflicts and needless propaganda”.

  • Fuel ‘wahala’: Marketers queued for days at Dangote refinery unable to load — IPMAN cries out

    Fuel ‘wahala’: Marketers queued for days at Dangote refinery unable to load — IPMAN cries out

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said its members couldn’t load petrol from the Dangote Refinery in Lagos despite having paid ₦40bn to the Nigerian National Petroleum Company Limited (NNPCL).

    IPMAN President Abubakar Garima stated this on Wednesday in a national tv program.

    Garima expressed surprise that the owner of the $20bn refinery Aliko Dangote said marketers were boycotting his refinery to buy imported petrol.

    The IPMAN boss said his members are not importing petrol, as claimed by Africa’s richest man. He said rather than get Dangote petrol through the NNPCL, the private refinery should register independent petrol marketers directly for smooth loading of the product.

    “If he (Dangote) can be able to sell the product to us directly, we can buy the product, because we have to pay before we pick. Presently, we have ₦40bn under the NNPCL custody but we cannot source the product.

    “Just of recent, there are some of my marketers that NNPCL sent to load in Dangote refinery and those marketers stayed with their trucks for four days, and they cannot load.”

    On Tuesday, billionaire businessman Aliko Dangote held a meeting with President Bola Tinubu in Abuja and told reporters that he has over 500 million litres in tanks at his mammoth refinery but marketers are not patronising his facility.

    However, Garima said IPMAN, with over 20,000 members in Nigeria, has ₦40bn upfront payment with the NNPCL and still can’t load the premium product from the private refinery.

    Garima said Nigerians would see a reduction in the pump price of petrol if Dangote Refinery let independent marketers lift the product directly like the NNPCL.

    ‘Check Your Price’

    The IPMAN president also urged Dangote to check the price of his commodity if marketers importing petrol are boycotting his product.

    “Since he (Dangote) says marketers are not buying his product, he should check his price properly. Is it higher than what they are obtaining outside or is it the same rate? Then if marketers buy this product through him, how long will it take for it to reach their depots? That one too is a factor,” Garima stated.

    The IPMAN president said there was nothing wrong if marketers outside his organisation decided to sell imported products but Dangote “should go and review and check how much are they selling outside.”

    Nigerians are grappling with the weight of unprecedented food inflation, and energy prices which have quadrupled in the last year under the Tinubu administration. Specifically, the price per litre of petrol jumped from less than ₦200 to over ₦1,000.

    Many people have blamed the twin policies of petrol subsidy removal and unification of forex rates for the high living costs that have assailed the middle class, many of whom have abandoned their cars for public transportation.

  • Ghana to import petrol from Dangote Refinery

    Ghana to import petrol from Dangote Refinery

    The National Petroleum Authority of Ghana says it is proposing to import refined petroleum products from Dangote Refinery to boost its energy security and sustain business cooperation with neighbours.

    Dr Mustapha Abdul-Hamid, Chief Executive Officer, NPAG, said this at the 2024 OTL Africa Downstream Energy Week on Tuesday in Lagos.

    Speaking as one of the panelists, Abdul-Hamidsaid that the move was aimed at strengthening Ghana’s energy security,  and to deepen regional economic cooperation.

    The 2024 OTL, 18th edition, has the theme ‘Alliances for Growth’.

    According to Abdul-Hamid, Ghana is seeking an agreement with Dangote Refinery, and reducing its reliance on more costly imports from Rotterdam.

    He said that Ghana had  also expanded its export agreements to include Burkina Faso, Mali, and Niger, supplying international operational facilities, including U.S. military bases.

    “The Dangote Refinery, with its large-scale output, is expected to meet Nigeria’s domestic demand, enabling excess production to be exported to Ghana,” he said.

    Abdul-Hamid highlighted Ghana’s pipeline agreement with Burkina Faso as a model of effective regional cooperation to bolster petroleum supply and security, while calling for stronger regional partnerships.

    He stressed the importance of a unified currency, enhanced infrastructure, and collaborative efforts to address West Africa’s energy challenges.

    The chief executive officer called for resource-sharing to drive economic stability, noting that no African nation could achieve sustainable growth in isolation.

    “Pooling human and infrastructure resources across the region can significantly strengthen our economies,” he said.

    He suggested that West African nations aligned regulatory policies within the ECOWAS framework to foster seamless trade.

    Abdul-Hamid acknowledged that, while the African Continental Free Trade Area (AfCFTA) provided a platform for collaboration, foreign exchange (FX) issues hindered intra-regional trade.

    “Heavy reliance on the U.S. dollar for petroleum imports places constant pressure on local currencies, raising prices and reducing purchasing power,” he explained.

    He proposed a common West African currency to reduce FX volatility and stabilise regional economies.

    On regional economic stability through shared infrastructure, Abdul-Hamid emphasised the need for unified investments in infrastructure to lower transportation costs and improve distribution within the region.

    “Transporting petroleum by road is both costly and risky, with hazards such as banditry. A shared pipeline infrastructure is safer and more cost-effective,” he said.

    Abdul-Hamid cited the Ghana-Burkina Faso pipeline agreement, designed to reduce dependence on tanker transport and ensure consistent supply.

    He said that Ghana had introduced regulatory policies that allowed marketers to share storage facilities, promoting cooperation and economic stability.

    “This reform supports alliances among importers, enhancing business success and broader economic stability.”

    Ms Oluwatosin Aina, Group Head, Energy, First Bank of Nigeria Ltd., also echoed Abdul-Hamid’s call for a unified African currency.

    Aina noted that dollar-based transactions inflated operational and product costs across the continent.

    She explained that petroleum transactions with Dangote Refinery and Ghana’s Sentuo Oil Refinery must be dollar-based, “as no African refinery will sell Premium Motor Spirit (PMS) in local currencies.”

    The group head said that the end of Nigeria’s fuel subsidy had created new investment opportunities in downstream and midstream sectors, making it easier for banks to fund petroleum imports.

    She, however, noted that dollar-denominated transactions continued to strain the naira and other regional currencies, calling for strengthened non-oil exports to improve FX inflows.

    Aina suggested a model based on the European Union’s common currency, the euro, to stabilise African markets.

    “Francophone African countries benefit from stable exchange rates under their shared currency, making them less vulnerable to FX volatility.

    “Anglophone nations could adopt a similar approach to strengthen trade and financial stability,” she said.

    Abdul-Hamid and Aina stressed the urgent need for a unified infrastructure and currency reforms.

    They said that by aligning fiscal policies, petroleum infrastructure, and regulatory frameworks, West African nations could address currency challenges and ensure affordable, stable petroleum pricing for citizens.

  • Marketers fault Dangote Refinery for opposing petrol imports

    Marketers fault Dangote Refinery for opposing petrol imports

    Petroleum Oil marketers have faulted Dangote Refinery over its stance against the importation of Premium Motor Spirit (Petrol).

    The President of the Petroleum Products Retail Outlet Owners Association, PETROAN, Bill Gillis-Harry, spoke in an interview on Channels Television on Monday.

    According to him, no refiners, marketers or retailers have the locus standi to tell the Nigerian government to halt petrol imports.

    He noted that every player in the oil and gas sector should be allowed to play freely in the industry for competition to thrive.

    “I don’t think any refiner or importer or retail outlet owners have the locus to ask the Federal Government to stop attending to any part of the business.

    “Every participant in the sector should be freely allowed to participate,” he said.

    Reports emerged that Dangote Refinery had asked an Abuja High Federal High Court to void petrol import licences to Nigerian National Petroleum Company Limited, NNPCL, and other petroleum marketers.

    However, in an update, Dangote Group clarified that the case has been overtaken by events.

     

  • Fuel import: Dangote Refinery speaks on fresh case filed against NNPCL, others

    Fuel import: Dangote Refinery speaks on fresh case filed against NNPCL, others

    The management of Dangote Refinery has reacted to a report claiming it’s approached court to stop the Nigerian National Petroleum Company Limited (NNPCL) and others from continuing fuel importation.

    Dangote Refinery, in a statement signed by the Group Chief branding and Communication Officer of Dangote Industries Limited, Anthony Chiejina, on Monday, debunked the report, saying it “is an old issue that started in June and culminated in a matter being filed in September 6, 2024.”

    It explained that since President Bola Ahmed Tinubu’s directive for crude oil for Naira initiative, events have overtaken the development.

    “Currently, the parties are in discussion since the President Bola Tinubu’s directive on Crude Oil and Refined products sales in Naira Initiative, which was approved by the Federal Executive Council (FEC).

    “We have made tremendous progress in that regard and events have overtaken this development,” the statement said.

    Continuing, the Dangote Refinery clarified that it neither served any party with the court process nor intended to do so. It, however, expressed readiness to withdraw the case when it comes up in January, 2024.

    “We have agreed to put a halt to the proceedings.

    “It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court.”

     

  • Marketers reportedly resume petrol importation as Dangote Refinery fails to meet demands

    Marketers reportedly resume petrol importation as Dangote Refinery fails to meet demands

    Petroleum marketers have reportedly resumed importing petrol to supplement the country’s fuel supply, following the inability of the Dangote Refinery to meet demand.

    Four vessels carrying 123.4 million litres of Premium Motor Spirit (PMS) arrived at Nigerian seaports between Friday, October 18, and Sunday, October 20.

    Akelicious reported earlier that the failure of the 650,000 barrels per day Dangote Refinery to meet its promised production target raised concerns about fuel scarcity.

    Oil dealers had earlier disclosed that the refinery was producing only 10 million litres of petrol daily, far below its initial promise of 25 million litres.

    It is understood that the federal government’s full deregulation of the downstream oil sector has created room for PMS imports. Dealers took advantage of the fair market price to import about 141 million litres of PMS in September.

    According to a document obtained from the Nigerian Port Authority, the four vessels berthed at the Apapa port in Lagos and the Calabar port in Cross River State.

    35,000 metric tonnes of PMS arrived at Apapa port on Friday, October 18; 37,000 metric tonnes of fuel arrived at Apapa port on Friday, October 18; 10,000 metric tonnes of fuel arrived at Apapa port on Friday, October 18 and 10,000 metric tonnes of fuel arrived at Calabar port on Sunday, October 20, findings by Punch Newspaper revealed.

    Using the conversion rate of 1,341 litres to one metric tonne, the total importation stands at approximately 12

  • FG announces approval for marketers to lift fuel from Dangote Refinery

    FG announces approval for marketers to lift fuel from Dangote Refinery

    The Federal Government has given approval for marketers to begin the lifting of premium motor spirit commonly known as fuel from the Dangote Refinery without going through the Nigerian National Petroluem Company Limited (NNPCL).

    According to a statement by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the move followed a directive from the Federal Executive Council (FEC) and the implementation of the new naira-based sales mechanism.

    “New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries,” the minister who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira said.

    “This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.”

    With the move, marketers can now negotiate commercial terms directly with the refineries which the minister said will help in “fostering a more competitive market environment and enabling a smoother supply chain for petroleum products”.

    The minister said in the committee’s meeting on October 10, it also agreed that the commencement of local production of PMS will be a game changer for the industry.

    “This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians,” Edun said.

    He assured the committee is ready to provide clarity regarding changes in the market.

    “We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process. ”

  • Stop operating in secrecy and reveal the cost Of PMS to Nigerians – PETROAN tells Dangote Refinery

    Stop operating in secrecy and reveal the cost Of PMS to Nigerians – PETROAN tells Dangote Refinery

    The President of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), Billy Gillis-Harris, has urged Dangote Refinery to stop operating in secrecy and reveal the cost of his Premium Motor Spirit (PMS) to Nigerians.

    Gills-Harris urged the management of the refinery to be open and get inputs from stakeholders.

    The PETROAN boss stated this during an interview on Channels TV on Thursday.

    He said, “Regarding Dangote price, as I speak to you this morning, I don’t know what Dangote price is all about and that is speaking a lot because, at this point in the Dangote campaign in Nigeria, retail outlets like us should know the price input of Dangote but they have kept that shrouded in secrecy up until now,” he said.

    He noted that while the Nigerian National Petroleum Company Limited gave a price template, it did not reveal the input of Dangote Refinery in the pricing.

    He said, “NNPC gave us a price template that also did not tell us what is the exact price input from Dangote.

    “We will encourage Dangote to open up the space of communication, talk to stakeholders, get valuable inputs from everyone because it’s a business that involves Nigerians, retail outlet owners like us, different consumers, so there should be some level of business transparency, even if it’s a private business.

    “We are so proud that we have such facility operating in Nigeria but we need to start to see the works. I am unable to confirm to you if Dangote increased their prices or reduced it because we are not aware.”

    He noted that the refining company is open about its diesel price but not that of Premium Motor Spirit (PMS), also known as petrol.

    “I can tell you about their price for diesel because the diesel prices were made known to us, most of us patronise them for diesel but in case of the PMS, I don’t have any information,” he said.

     

  • FG officially announces Dangote Refinery as sole supplier of jet fuel in Nigeria

    FG officially announces Dangote Refinery as sole supplier of jet fuel in Nigeria

    The Nigerian federal government has officially designated Dangote Refinery as the sole provider of Jet A1 fuel to aircraft operators across the country.

    This announcement was made by the Minister of Aviation, Festus Keyamo, during an interview broadcast on Channels TV on October 8.

    According to Keyamo, airline operators had recently convened and agreed, with his endorsement, to source all their jet fuel exclusively from the Dangote refinery, which has a capacity of 650,000 barrels per day.

    “This decision stems from a recent meeting of the airline operators in Nigeria, where they collectively resolved to purchase Jet A1 fuel solely from Dangote Refinery, with my approval,” Keyamo stated.

    He noted that the federal government had also initiated a naira-for-crude agreement with Dangote, emphasizing that all transactions would now be conducted in Naira, eliminating any dollar components.

    “This arrangement is timely as we have just implemented the naira-for-crude purchase. It will significantly reduce the pressure on foreign currency reserves,” he added.

    Keyamo assured that this local currency transaction would stabilize fuel prices, shielding them from the fluctuations associated with the international market and the unpredictable oil price dynamics.

    “The pricing will be more predictable since it will no longer be influenced by international market factors. We anticipate that this will provide us with more affordable access to Jet A1 fuel.”

     

  • Dangote Refinery ramps up petrol production to meet local demand

    Dangote Refinery ramps up petrol production to meet local demand

    Alhaji Aliko Dangote, President of Dangote Group, has disclosed that his refinery, Dangote Refinery is ramping up production of Premium Motor Spirit (PMS), aka petrol, to meet domestic demand.

    TheNewsGuru.com (TNG) reports Alhaji Dangote made the disclosure on Tuesday in his keynote address at the Crude Oil Refinery Owners Association of Nigeria (CORAN) Summit in Lagos State.

    Speaking at the summit that was held with the theme: “Making Nigeria a Net Exporter of Petroleum Products”, Dangote stressed the refinery was already producing sufficient diesel and jet fuel to meet Nigeria’s needs, adding, however, that the refinery was constructed without any government incentives.

    Dangote, who was represented by Mr Ahmed Mansur, Dangote Group, said that there was a need for investor incentives to realise Nigeria’s vision of becoming a refining hub.

    He stressed the importance of ensuring sufficient feedstock availability, while calling for an end to mortgaging crude oil.

    “It is unfortunate that while countries like Norway are investing oil proceeds into a future fund, we in Africa are spending our future earnings,” Dangote said.

    He also called for prioritising the implementation of domestic crude supply obligations and expanding crude oil production capacity to meet the demands of new refining facilities.

    Dangote commended the efforts of President Bola Ahmed Tinubu, highlighting the government’s active steps to accelerate International Oil Companies (IOC) divestments and other initiatives.

    Despite being Africa’s largest crude oil producer, Dangote said that Nigeria had long relied on imports to meet its refined petroleum product needs.

    He said, “Nigeria is poised to transition from a “net importer” to a “net exporter” of refined products, positioning itself as a significant player in global downstream trade.

    “This impending transformation is indicative of our progress as an industry and as a nation. We owe a debt of gratitude to President Tinubu for his unwavering support throughout this journey.”

    Dangote also addressed the opportunities in Africa, noting that the continent imports about three million barrels of petroleum products daily, with half of that coming from coastal countries.

    He highlighted that these countries produce over 3.4 million barrels of crude oil daily, with imports primarily sourced from Europe, Russia and other regions.

    “In 2023 alone, this trade was estimated at approximately 17 billion dollars.

    “However, these markets will be better served from Nigeria, reducing logistics costs and allowing countries to purchase their petroleum product requirements just-in-time,” he explained.

    He asserted that Nigeria and Africa could achieve self-sufficiency in petroleum products, retaining all economic value locally.

    “We have succeeded in cement production, and we can certainly replicate that success in petroleum refining.

    Dangote highlighted that the Dangote Refinery already produces sufficient diesel and jet fuel to meet Nigeria’s needs and is ramping up production of PMS to meet domestic demand.

    “The refinery has also begun exporting products to markets in Europe, Brazil, the UK, the USA, Singapore, and South Korea.

    He acknowledged that global developments in the petroleum sector, particularly in Europe, are likely to disrupt traditional trade flows for refined products in Africa.

    “Nigeria is uniquely positioned to capitalize on these opportunities and become a formidable player in the global oil industry.

    “As a vibrant exporter of refined products, Nigeria stands to improve its trade balance and generate much-needed foreign currency.

    “There is no doubt about Nigeria’s potential as a refining hub; let’s work together to make it a reality,” he added.

    In his address, Gov. Babajide Sanwo-Olu of Lagos State urged oil and gas stakeholders to leverage the sector’s immense potential to become a global supplier of refined petroleum products.

    The governor was represented by Mr Biodun Ogunleye, Commissioner for Energy and Mineral Resources.

    He affirmed the state’s commitment to supporting the vision through initiatives that enhance infrastructure, logistics and regulatory frameworks necessary for investment in energy and refining sectors.

    He noted that the Dangote Refinery, located in Lagos, exemplifies the potential that exists when vision meets conducive conditions for success.

    “We are at a pivotal moment in Nigeria’s economic journey, where increasing refining capacity is essential for reducing reliance on imports and positioning Nigeria as a significant player in the global energy market.

    “This focus on refining will stimulate job creation, enhance foreign exchange earnings and contribute to economic diversification.

    “Lagos State is the economic powerhouse of Nigeria, and I recognise the central role it plays in driving the nation’s industrial and energy sectors,” he said.