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Domestic Marketers Rush Dangote Refinery For Products

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As Nigerians expect premium motor spirit from the Dangote Petrochemical Refinery this month, petroleum marketers have started registering with the company ahead of loading the product, The PUNCH has learnt.

The marketers are registering as individual business owners applying to get direct fuel supply from the oil refinery.

This is even as the Independent Petroleum Marketers Association of Nigeria said it would continue talks with the company to get bulk supply for its members who may not be able to buy a large volume of petrol from the refinery.

The President of the Dangote Group, Aliko Dangote, last month disclosed that it would begin the sale of PMS in June, saying his refinery would end the importation of petrol into Nigeria.

Speaking at the recent Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote expressed optimism about transforming Africa’s energy landscape.

“Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre,” he declared

“We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico.”

“We have started producing jet fuel, we are producing diesel, and by next month, we’ll be producing gasoline. What that will do, it will be able to take most African crude,” Dangote told the panel.

The words of Dangote appeared to have come as a soothing balm to marketers who have not been able to import fuel for a long time.

To independent marketers, the news is heart-warming because they have hitherto depended on third parties to get petrol at a higher cost for their filling stations scattered across the country.

When he was speaking with our correspondent in May, the National Vice President of IPMAN, Hammed Fashola, expressed happiness, saying “the Dangote refinery can satisfy our needs as far as petroleum products are concerned, especially petrol”.

The IPMAN leader expressed the eagerness of marketers to start lifting fuel from the refinery, saying, “We are all waiting, we are eager for the commencement of the lifting on petroleum products from Dangote refinery, especially petrol”.

The marketer stressed that the private refinery would put an end to fuel scarcity in Nigeria as the product would no longer be imported.

Meanwhile, Fashola explained that IPMAN as a body is yet to have an agreement with the Dangote refinery on the supply of premium motor spirit, calling on the company to consider working directly with the association instead of individuals.

He noted that IPMAN should be a beautiful bride before Dangote for being in control of over 80 per cent of the filling stations in Nigeria.

Fashola said plans had been concluded to meet Dangote for discussions on possible price cuts. He told The PUNCH that they would meet with Dangote to negotiate a discount through bulk purchases.

The IPMAN leader said, “We have our letter with them, we are expecting their response, and we will surely do a follow-up. The letter was sent about a month ago and we are going to follow up. We are just like a ready-made market for Dangote. It is an advantage for him to have us in his programme. I believe that he would like to have us.”

He added that the association would request a discount during the meeting with Dangote.“You know when you come together as a group, you have that negotiating power on your strength. There is no way we will not negotiate for a discount. That is why we don’t encourage individual company participation,” he stated.

While it appears the proposed meeting with Dangote has yet to materialise, Fashola informed our correspondent on Sunday that individual marketers are already applying for the product.

Asked if IPMAN had met with Dangote, he replied, “No, but we have started registering individually with the company.”

Replying to whether the marketers were no longer interested in meeting the company’s president, he said, “Discussion is still going on it.”

Contacted, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said he would not know whether or not members of the association were already registering with Dangote.

“I have to ask, I am not sure. I don’t know. I don’t have any information,” Isong tersely retorted.

There are speculations that the refinery might choose to sell its petrol through a major marketer.

The company is currently selling its diesel through MRS, one of the energy firms making up MEMAN.

“I can confirm to you that Dangote Petroleum Refinery has entered a strategic partnership with MRS oil and gas stations to ensure that consumers get to buy fuel at affordable prices in all their stations, be it Lagos or Maiduguri,” the company’s spokesperson, Anthony Chiejina, said in April.

When the Dangote refinery announced the commencement of operations in January, the Executive Secretary of MEMAN, Isong, informed The PUNCH that its members had registered with the refinery.

“We have all registered with Dangote so that we can buy and sell. All my members are registered with Dangote. Whenever the product is ready and starts coming out, you will see it in our filling stations.

“I confirm that my members have registered with them. We were waiting for the production to start and now it has started and they will start discussing the commercial terms.

“So now, the commercial terms will be agreed with each marketer and then they will buy from them,” Isong stated.

In January, the Dabgote Group, owners of the 650,000 barrels per day capacity refinery confirmed the registration of oil marketers as its distributors, stating, “Three prominent associations, that constitute 75 per cent of the total market in Nigeria have been registered. The Depot and Petroleum Products Marketers Association of Nigeria, the Independent Petroleum Marketers Association of Nigeria, and the Major Energies Marketers Association of Nigeria.”

Meanwhile, Nigerians are eagerly waiting to start having the Dangote petrol in circulation, hoping that it would crash the current pump price of the fuel which the masses majorly depend on for transportation and individual power generation.

 

Story Credit – The PUNCH, except the headline.

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CSOs Urge Further Reduction Of Pump Prices Of Petrol

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NNPCL Raises Official Fuel Pump Price To N537 Per Litre

 

Following the marginal reduction of the pump prices of premium motor spirit (PMS) by the Dangote Petroleum Refinery and the Nigerian National Petrol Company Limited (NNPC Ltd), civil society groups have reacted by calling for further downward review.

Recall that the Dangote Petroleum Refinery had announced a partnership with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, while it reviewed the ex-depot price from N970 to N899.50 per litre.

The move, saw state oil major, the Nigeria National Petroleum Company peg its retail prices at N965/litre.

ALSO READ: Dangote Partnership: MRS Urges Nigerians To Insist On N935/Litre Petrol Price Nationwide

However, the civil society groups are of the opinion that the price reduction, fall short of expectations.

According to the Chairman, Centre for Accountability and Open Leadership, Debo Adeniran, the reduced price of N935/litre was still expensive and unsatisfactory.

He pointed out that petrol was just one of the products coming out of crude and that both government and private business could still give out free petrol to citizens while making huge profits from the other products.

In his words, “Well, we believe that if NNPC and the private sector actually give out PMS for free, they will still not run their business at a loss, because the other derivatives of petroleum products can still serve them, and can still make them to break even. So, even at that N900 and something, it’s still expensive.

“Dangote has kind of mooted the idea that it could drop to as low as N650. And if he has mulled this, then it means that it is the state, it is the NNPC that will have been the clog in the wheel of such progress. And you know also that we expected that fuel prices, especially PMS prices, will drop below N200 when Dangote was expected to come on stream.

“So, it’s unfortunate that we are still talking about over N900 and they want us to jump up and rejoice for that. That is not satisfactory. They should just let us see the breakdown of their production cost and why it’s still there. I mean, there are countries like Libya under Gaddafi that gave out PMS for free and they didn’t run anything at any loss. So, I believe that it can still go further down.”

On his part, the Executive Director of the Civil Society Legislative Advocacy Centre, Ibrahim Rafsanjani, commended the reduction of fuel prices by the NNPC and Dangote, but said the government could still reduce the price.

“Dangote’s own is about N899 or something like that. Well first and foremost, we are happy that there is a little reduction in the prices. But also based on analysis and based on facts and evidences, we believe that it is possible for the Nigerian government to further reduce the prices.

“Because if a private company can reduce the price and it still makes profit, we wonder why government-owned enterprises cannot really pity its citizens,” he said.

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Non-Oil Sector Fuels Nigeria’s Q3 2024 GDP Growth, Says CBN

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The Central Bank of Nigeria (CBN) has announced a significant growth in the country’s economy, with a 3.46% increase in gross domestic product (GDP) in the third quarter of 2024.

This marks the third consecutive quarter of expansion, up from 3.19% in Q2 2024 and 2.54% in Q3 2023.

According to the newly published Q3 economic report, Nigeria’s GDP output rose to ₦20.115 trillion, reflecting a notable improvement from ₦18.285 trillion in the previous quarter.

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The CBN attributed this growth primarily to the performance of the non-oil sector, which grew by 3.37% compared to 2.80% in Q2 2024.

The report highlighted transportation, crop production, and other sub-sectors such as financial & insurance services, information & communication, trade, and real estate as major contributors to the expansion.

The non-oil sector accounted for 3.18 percentage points of the total growth rate.

“The expansion of the non-oil sector was driven by the performance of the financial & insurance, information & communication, crop production, trade, transportation & storage, and real estate sub-sectors,” the report stated.

Despite the economic growth, challenges persist. Inflation, particularly in food prices, remains a significant concern, standing at 39.93% as of November 2024.

Rising food and energy costs have also impacted transportation expenses, with intercity bus fares increasing by 20.23% year-on-year to ₦7,117.17 in July 2024, according to the National Bureau of Statistics.

Furthermore, the cost of petroleum, now exceeding ₦1,000 per litre, has driven up logistics and transportation expenses, adding pressure to households and businesses alike.

The CBN acknowledged these challenges, noting that the growth was achieved despite headwinds such as high inflation and rising operational costs.

Enhanced security measures in the Niger Delta have boosted domestic crude oil production, while restrictive monetary policies have helped moderate inflation in some areas.

“The growth recorded in the country is a result of continued efforts to improve the business environment, streamline cumbersome business processes, and deepen the quality of business infrastructure,” the CBN noted.

However, the report comes amid concerns over businesses exiting Nigeria due to persistent economic challenges.

 

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CSR: Asharami Synergy Donates Furniture To Gaskiya Junior School

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AOW 2021: Sahara Group advocates measured transition in Africa’s upstream sector

 

Asharami Synergy, a leading downstream energy solutions provider, has demonstrated its commitment to community development and education by donating essential furniture to Gaskiya Junior School in Ijora, Lagos, Nigeria.

Biztellers reports that the social responsibility initiative was executed in collaboration with Sahara Group Foundation – the social impact vehicle of global energy conglomerate, Sahara Group.

It was gathered that the initiative is part of Asharami Synergy’s ongoing efforts to support education in communities.

The donation includes classroom desks and chairs for the JSS1 classes.

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CEO of Asharami Synergy, Nomnso Dike, said the project will create a more comfortable and functional learning environment and enhance student performance.

“We are delighted at the opportunity to support the attainment of Sustainable Development Goal (SDG) 4, which focuses on ensuring inclusive and equitable quality education. It has been a privilege to collaborate with the management and students of Gaskiya Junior School to deliver this project, and we look forward to future opportunities to enhance academic performance in this historic institution,” Dike said.

According to him, Asharami Synergy’s education-focused social impact initiatives have benefitted over 10,000 individuals. They focus on building capacity and providing the resources necessary to help students learn and grow sustainably.

“Education is the foundation of a brighter future, and at Asharami Synergy, we believe that every child deserves a learning environment that inspires and empowers them” he noted, adding, “This donation is not just about providing furniture; it’s a reminder to the students that their dreams are valid, and we are committed to helping them achieve their goals.”

Vice Principal Academic of Gaskiya Junior School, Sola Oladokun, commended Asharami Synergy for the donation, noting that it would inspire students to perform better with “increased concentration and fewer distractions”.

“These desks and chairs are a game-changer for our students. It’s heartwarming to see their excitement, and as teachers, we are equally thrilled because this will make teaching and learning more effective. We are incredibly grateful to Asharami Synergy and Sahara Group Foundation for this thoughtful intervention,” she added.

Two representatives of the students, Akin Moses and Chukwudi Gift, at the event said the donation would increase their “desire to dream bigger and concentrate better during lessons”.

Also speaking at the commissioning, COO at Asharami Synergy, Adekanmi Adesola, said, “What started as an opportunity to support the communities that host our operations has now come full circle. This donation directly impacts the lives of these students, and we are proud to bring smiles to the faces of the students and teachers.”

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