The new purchase comes after a three-month hiatus in purchasing crude from foreign countries, focusing instead on domestic supply.

A report by Bloomberg on Wednesday said the cargo conveying two million barrels of WTI Midland crude from Chevron Corp is due to be delivered to the refinery next month.

The latest development may be an indication that the naira-for-crude initiative by the Federal Government may have stalled or that the refinery is not getting enough crude supply from the Nigerian National Petroleum Company Limited.

Dangote refinery purchased its first shipment of US oil after a hiatus of three months as the site continues to ramp up production.

“The plant purchased about two million barrels of WTI Midland crude from Chevron Corp,” the report said.

Chevron booked the supertanker Azure Nova to load crude from the US Gulf around December 5 to Dangote, according to tanker fixtures seen by Bloomberg.

Earlier this year, Dangote was typically receiving one or two supertankers of US crude every month alongside domestic supplies.

However, these imports were reduced around August following an agreement with the federal government that the NNPCL would supply crude oil to the refinery in naira rather than dollars.

The agreement stated that the refinery would take up to 400,000 barrels a day of Nigerian crude paid for in local currency.

Dangote is taking a growing role in US and European oil markets, after gradually raising purchases of crude from Nigeria and the US.

The plant’s pull on those barrels increases the competition for the oil faced by traditional buyers in Europe.

The report added that reasons for the return to US imports remain unclear, though a report from Sparta Commodities earlier this week suggests lower shipping costs may have made US oil more affordable in Europe recently.

On Monday, the refinery was seeking to raise billions of dollars to import crude oil and increase production.

The report said the Chairman of Dangote Group, Aliko Dangote, was in concrete talks with commercial lenders, development banks, oil traders, and other industry participants to raise funds for crude supplies to turn into refined products.

According to the report, the refinery would need a minimum supply of 300,000 b/d to secure more crude to reach its refinery’s capacity.

On Tuesday, the plant began refined petroleum product shipping to West African countries,  a sign to traders that the mega-refinery’s operations could soon potentially shake up regional fuel markets.

NNPC’s Group Chief Executive Officer, Mele Kyari, disclosed this on Monday at the ongoing conference of the Nigerian Association of Petroleum Explorationists, which was held in Lagos and themed ‘Resolving the Nigerian Energy Trilemma: Energy Security, Sustainable Growth and Affordability’.

This is coming at a time when some petroleum marketers insisted that they would import petroleum products and sell at a price lesser than that of the $20bn dollar refinery.

In August, President Bola Tinubu said the country spent an average of N2tn on fuel importation monthly.

According to Tinubu, the launch of compressed natural gas into the country would save the country “over N2tn a month used to import PMS and AGO and free up our resources for more investment in healthcare and gas education.”

The President’s statement means that the country spends about N24tn yearly to import petrol and diesel, excluding aviation fuel, kerosene, and gas.

Despite being an oil-producing country, Nigeria has for years imported its fuels due to a lack of local refineries.

Speaking at the NAPE Conference, Kyari disclosed that the NNPC, as of today, is not importing any fuel as it now buys from local refineries.

“Today, NNPC does not import any product, we are taking only from domestic refineries,” he revealed.

Recall that the NNPC was the sole off-taker of Dangote PMS until the Federal Government permitted other marketers to approach the refinery for direct lifting.

Kyari debunked the allegations that the NNPC was sabotaging the Dangote refinery.

Speaking on domestic refining, he said there were several media stunts around saying the NNPC was now a saboteur of domestic refining by not willing to support domestic refineries.

“The point is very far from it and I’m going to speak to it straight. We are very proud part-owners of Dangote refinery, no doubt about it. We saw an opportunity that there is a clear market for at least 300,000 barrels of our production; we know that as time moves on, people will start struggling to find markets for their production.

“It will happen, It’s already happening. Oil is found, as you know, in many unexpected locations across the world and people have choices. Therefore we saw an opportunity to log supply to the domestic refinery, not just Dangote but any other refinery that operates in the country, so it was a very informed business decision.

“Therefore, from day one, we knew that it is to our benefit to supply crude oil to the domestic refinery, so we don’t need to be persuaded; we don’t need anyone to talk to us, there is no need for any pressure from the streets for us to do this. We are already doing this,“ he clarified.

On the request that Nigeria needs to domesticate its oil, he posited that Nigerian crude is ’Lamborghini crude ‘, so the products would be pricey.

According to Kyari, the issue of high-quality fuel should be a relative thing, saying many refineries do not patronise Nigerian crude because of the price.

He revealed that some global traders buy the crude and blend it with dirtier fuel to save cost.

He said, “We should never forget that Nigerian crude is ’Lamborghini crude’, if we choose that every product that we have in this country must come from domestic production, then we must deal with pricing. Otherwise, out there in the global market, everybody buys Nigerian crude and blends it with dirtier crude to process, a lot of you will confirm this. So, no one takes Nigerian crude except one or two refineries that I know. Straight processing of Nigerian crude, nobody does this, because you do have a gap in value if you do this.

“Therefore, as a country, and I believe this strongly also, that we must process all the crude that we produce in the country to the optimum. You can do intermediate products and sell to the market, you are still adding value. You don’t have to sell gasoline that is coming from Nigerian production.

“You can do something different so you can process it domestically, but it’s going to be high quality. As we all know and it’s very clear in the media that we are selling high-quality products, that’s very true but you need not do this. You are driving a Keke-Napep and you want Lamborghini fuel, you do not need it. So, the quality issue is a relative thing, it’s by geography, by location, and we will do everything possible to make sure that we domesticate this. Today, NNPC does not import any product, we are taking only from domestic refineries. But I also know that we are working jointly with the government to make sure that we manage the issue around prices if we have to source all our supply from the domestic market. It will be an issue and we are already resolving it. I can confirm that substantial work has been done and this will no longer be an issue.”

This, according to the association, will ensure the availability of petroleum to Nigerians at a cheaper rate.

IPMAN’s National President, Abubakar Garima, announced this at a press briefing on Monday in Abuja, following a meeting of the National Working Committee of the association.

He explained that the Dangote refinery had obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. This new arrangement with the Dangote refinery would ensure a steady and ceaseless supply of PMS products all over Nigeria at an affordable rate.

He said, “Following our recent meeting with Alhaji Aliko Dangote and members of his top management staff in Lagos, we are happy to state the following; Dangote Refinery has obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. That this new arrangement with the Dangote refinery will ensure a steady and ceaseless supply of PMS products all over Nigeria, at an affordable rate for Nigerians also.”

On October 29, the founder of Dangote Industries Limited, Aliko Dangote, said the refinery held over 500 million litres of petrol, but added that oil marketers were not buying his product.

In a counter-response, IPMAN said its members had been unable to load petrol from the Dangote refinery for days. Garima said the association paid N40bn to the Nigerian National Petroleum Company Limited, but still cannot source the product – but the refinery said it has not received any payment from the IPMAN for refined petroleum products.

Speaking further at the briefing, Garima urged IPMAN members to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s Foreign Exchange market.

Regarding pricing, Garima expressed confidence that negotiations with Dangote would yield lower rates.

“All IPMAN members should fully support the Dangote refinery, as it’s the ideal thing to do considering the monumental benefits of backward integration and the medium to long-term impact it will have on the Foreign Exchange markets in Nigeria.

“IPMAN members nationwide should rely on the Dangote refinery and Nigerian rfineries for their white products, as this will translate into ensuring more job opportunities in Nigeria, as well as signify total support for President Bola Tinubu’s Renewed Hope Agenda,” he added.

Commenting, an Energy expert Kelvin Emmanuel, said the new agreement would eliminate financing and margin costs incurred by the NNPCL.

He said, “What is cheery about this news is that NNPC’s letter of credit as financing cost ($28 per metric tonne) that is passed to IPMAN — controlling 30,000 retail stations and their margin ($26.48 per metric tonne) will be removed.”

The IPMAN president also stated that the association is preparing for a smooth transition to nationwide CNG refill stations, as it is currently in negotiations with the presidential CNG initiative.

On CNG, I would also like to call on all our members at IPMAN to begin to put all types of machinery in place for a successful transition of the Federal Government’s plans to initiate CNG refill stations in all our outlets. Truly there is no doubt that CNG has the potential to rejuvenate our economy for a better life for Nigerians, and IPMAN is ready to give her all to support the CNG initiative.

“IPMAN is also calling for a partnership with the Federal Government of Nigeria to hasten the quick success of the CNG initiative for Nigeria. We believe that for the CNG initiative to succeed there must be a credible partnership between IPMAN and the PCNGI, without which Nigerians would not have ready and near access to CNG outlets.”

This partnership between Dangote and IPMAN is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry. This move is expected to eliminate middlemen, reduce costs, and ensure steady supply.

Early this year, the Dangote Refinery said it would supply fuel to about 150,000 retail outlets operated by oil marketers.

In his remarks, the chairman, Board of Trustees of the association, Aminu Abdukadir, said that IPMAN must remain committed to providing the retail stations and funds to ensure that products are delivered to consumers.

“The business of making money without doing anything is over with the deregulation of the sector. For IPMAN to survive, it must provide the filling stations, the money, the trucks, to provide this commodity to motorists,” he said.

Meanwhile, the Executive Secretary of the Major Energy Marketers Association of Nigeria, Clement Isong, has explained that the final landing price is determined by several key factors, including the exchange rate, logistics efficiency and cost negotiating power based on volume bought.

It was gathered that the four cargoes of crude were delivered to the refinery within the past three weeks when the government kick-started the sale of crude to local refineries in the local currency.

Informed sources about the local crude sale deal said that the refinery was still waiting to receive more crude oil cargoes from NNPCL, the organisation managing the country’s hydrocarbon resources.

They also confirmed that the $20bn Lekki-based plant was now set to begin the direct sale of refined Premium Motor Spirit, popularly called petrol, to domestic dealers.

A source close to the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency, who did not want to be mentioned because he was not permitted to speak with the press, confirmed to The PUNCH that “more cargoes (of crude) would be delivered to the Dangote refinery in the coming weeks.”

The official disclosed that the programme started with the Dangote refinery as the only petrol-producing facility in Nigeria at the moment.

Speaking with our correspondent, a senior official of the refinery confirmed the development, saying the first phase of the naira-crude sale agreement would last for six months unless it is renewed by the Federal Government.

The official said she could not tell the cost of the crude oil per barrel.

“The naira-for-crude deal has started. The Dangote refinery has received four cargoes so far and we are still expecting more. The four cargoes have been delivered to the refinery within the past three weeks. We are still expecting more cargo in the coming week.

“Don’t forget that this first phase of the naira-crude sale is just for six months. The government may decide to renew it at the end of the first six months and they may decide not to. So, we don’t know what will happen yet after the first six months.”

Recall that the 650,000 barrels per day capacity refinery was greeted by crude challenges when it began operations some months ago.

The President of the Dangote Group, Alhaji Aliko Dangote, had cried out, saying some international oil companies were planning to sabotage the investment by refusing to supply crude.

The Dangote Group had alleged that the IOCs insisted on selling crude oil to its refinery through their foreign agents.

It said the local price of crude would continue to increase because the trading arms offered cargoes at $2 to $4 per barrel, above the official price.

Multiple sources from NNPC and the Major Energies Marketers Association of Nigeria confirmed on Tuesday that NNPCL was no longer the sole off-taker of Dangote petrol, giving room for other players in the downstream to buy products directly from the Dangote refinery.

This came as unconfirmed reports stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority had released new petrol prices, which are higher than the current pump prices in various locations nationwide.

The spokesman of NMDPRA, George Ene-Ita, did not confirm the development when contacted on Tuesday night. He also did not reply to the text message sent to him on the matter as of the time of filing this report.

Meanwhile, oil marketers said the decision of NNPC to stop being the sole off-taker of petrol from the Dangote refinery means that the Federal Government has systematically stopped subsidy on petrol completely.

On September 25, The PUNCH exclusively reported that the Federal Government might spend about N236bn monthly to subsidise petrol imported through NNPC and the one that was solely off-taken by NNPC from the Dangote Petroleum Refinery.

The report showed that NNPC was shouldering a subsidy of about N3.3bn daily on Dangote petrol, meaning in 30 days it might spend N99bn to subsidise Dangote petrol to marketers.

But by halting its position as the sole off-taker of Dangote petrol, the national oil company may save this sum.

Recall that the Federal Government had stated severally that only NNPC would off-take petrol from Dangote refinery after the company commenced the sale of PMS in September.

While stating that crude would be sold to Dangote in naira from October 1, the government, through the Federal Ministry of Finance in a recent statement, said, “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira.

“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC. NNPC will then sell to various marketers for now. All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira. We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.”

A very senior official with a major oil marketing firm confirmed on Tuesday that dealers had yet to start the direct purchase of petrol from Dangote refinery but stated that NNPC had ceased to be the sole off-taker of Dangote petrol.

“It is not true that major marketers have started lifting PMS from the Dangote refinery. Rather we were made to understand that the directive to start buying directly from them (Dangote refinery) was given today (Tuesday),” the official, who spoke on condition of anonymity because he was not authorised to speak on the matter, stated.

“It was in the news yesterday (Monday), but it was formally stated today (Tuesday) that marketers should not go through NNPCL again, rather we should go straight to buy from the refinery.

Dangote said this on Tuesday during a press briefing announcing the formal production of petrol at the Refinery.

“Our PMS (Premium Motor Spirit) can be in filling stations within the next 48 hours depending on NNPCL,” he said.

Asked to speak on the pricing of petrol from his refinery, Dangote said, “It is an arrangement which is designed and approved by the Federal Executive Council led by His Excellency, President Bola Ahmed Tinubu.

As soon as it is finalised, which he (Tinubu) is pushing, once we finish with NNPC, it can be today, it can be tomorrow, we are ready to roll into the market.”

Last December, Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility sited in Lagos with 350,000 barrels a day.

The refinery, which was initially troubled by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.

Dangote also added that the introduction of naira for crude will reduce the demand for foreign exchange by 40 per cent.

“I want to thank President Bola Tinubu for creating this idea of Naira for crude and Naira for the product. Doing that will give a lot of stability to the Naira and remove 40 per cent of the demand for dollars. That’s not just it, there is a lot of round tripping,” he stated.

He added that it would become possible to track loaded trucks, hence making it easier to compute the national
consumption.

Dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria said they believe that the Dangote refinery would crash the price of petrol as it did with diesel.

IPMAN National Vice President, Hammed Fashola, told our correspondent in an interview on Monday that the $20bn refinery would bring down the cost of fuel if it gets the needed support, especially as it has to do with crude supply.

According to him, the Nigerian National Petroleum Company Limited, which is the sole importer of PMS has been selling to marketers at N570/litre, but most IPMAN members buy from private depot owners at N700 and above.

“We are marketers, we go for the best. We have been buying from the NNPC, but if the opportunity of Dangote comes and the price is favourable, we will grab it. It depends on the price.

“The official price from the NNPC is around N570/litre, but the third parties, the private depots sell PMS to most of our members at N700 and above.

“Plus or minus, we hope Dangote can sell between N600 and N650/litre. N600 is still okay. However, it depends on the cost of the production from Dangote’s end. We have to be factual and sincere to ourselves. The NNPC we are talking about has an element of subsidy or what they now call under-recovery. I think something is hidden there,” Fashola stated.

Speaking about diesel price, Fashola recalled, “We know Dangote refinery crashed the price of diesel. When the refinery started producing, diesel was around N1,600 and it went down to N1,000.

“Now you can buy diesel at N1,150 or N1,200/litre. We expect the same with PMS, but this crude crisis is a major challenge. Even if Dangote is buying crude in naira, if it is at the international market price, it will make no difference. We have to be realistic.”

The IPMAN leader said the association has had business discussions with some officials of the refinery on a possible partnership, saying the marketers are waiting for Dangote.

“The discussion continues. We are on course. I think very soon we will conclude the discussion. We are waiting,” he stated.

President of the Dangote Group, Alhaji Aliko Dangote, had last month projected that the refinery would begin the production of petrol between August 10 and 12, 2024.

However, the 650,000 barrels per day capacity refinery could not roll out petrol on Monday for different reasons.

Findings showed that the ongoing crude supply crisis might be a setback to the refinery.

On July 15, 2024, the President of Dangote Industries Limited, Alhaji Aliko Dangote, announced that the $20bn refinery was set to roll out its petrol in August 2024, having resolved its crude oil supply issues through the help of NNPC and the Federal Government.

“Gasoline (petrol) production is to commence in July with sales from August. Annual revenue is projected to exceed $26bn,” Dangote had stated while delivering a presentation at the plant last month.

But oil marketers on Sunday said that no dealer in Nigeria would be able to buy the petrol from the Dangote refinery, because the product would be priced at the international market rate, far higher than the domestic cost at the pumps.

When contacted and asked whether oil marketers had been briefed about the price of petrol from the Dangote refinery, the Deputy National President of the Independent Petroleum Marketers Association of Nigeria, Zarma Mustapha, gave a negative reply.

He, however, stressed that PMS from the plant would be sold at the international market rate, adding that no marketer would want to pay such price currently.

“There has been no official communication from them yet on pricing for petrol. However, one thing I want you to understand is that even if the Dangote refinery starts to release products, particularly PMS, no marketer can be able to buy the product from him.

This is because the refinery is an independent commercial entity and they must recoup their cost of refining and add some margin before they sell out the product. The current price of the product within the country is below the international price of a litre of PMS.

“So you cannot buy the product from the refinery at the international price and then sell it at the prevailing price at the retail outlets. If you do, you are going to lose a huge amount of money, which is a difference of between N400 and N500/litre,” Mustapha stated.

The IPMAN official, however, noted that for Nigeria to have Dangote petrol across its filling stations, the NNPC would have to intervene by purchasing the product and reselling it to dealers at discounted rates.

“NNPC may have to offtake the product, just like they are importing from other countries for upward supply to Nigerian marketers, I think only the national oil company can offtake PMS from them and know how best they can continue to supply it to marketers to sell at the approved current price.

“If it is not done this way, no marketer will be able to buy the product and sell it at a loss of over N400 to N500/litre. It is not possible” Mustapha stated.

the landing cost of petrol was N1,117/litre as of July 16, 2024, according to data released by the Major Energies Marketers Association of Nigeria. MEMAN disclosed this during a webinar with journalists.

The association had also revealed that the landing cost of diesel was N1,157/litre, while that of aviation fuel was N1,127/litre, at the time.

The N1,117 landing cost of petrol is far above the pump price of the product in Nigeria. Currently, the pump price of petrol is between N660/litre and N800/litre, depending on the area of purchase.

When contacted and asked whether major marketers would be able to buy petrol from the Dangote refinery, the Executive Secretary, MEMAN, Clement Isong, said his group had earlier published the landing cost of PMS, adding that this was the realistic cost of the product.

“You have seen the price we published which is the realistic cost, and you know the cost at the pumps today, and Dangote refinery is a business entity that will not want to make losses. So that is all I will say,” he stated.

NNPC is currently the sole importer of petrol into Nigeria. Other marketers stopped importing the product due to their inability to access the United States dollar required for PMS imports.

On Tuesday, the refinery announced a reduction in the price of diesel from N1,200/litre to N1,000/litre, a development that triggered excitement among operators in the downstream oil sector.

Dangote refinery announced this in a statement issued on Tuesday by its spokesperson, Tony Chiejina.

The statement read in part, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1200 to N1,000/litre.

“While rolling out the products, the refinery supplied at a substantially reduced price of N1,200/litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600/litre.

“This significant reduction in the price of diesel at Dangote Petroleum Refinery is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

Reacting to the price reduction on Tuesday, the Secretary of the Independent Petroleum Marketers Association of Nigeria, Abuja-Suleja Branch, Mohammed Shuaibu, said, “This is a welcome development and I am happy to hear this news because it will further increase competition in the downstream which will benefit many Nigerians.

“Such competition would create room for more price reduction and we are going to start seeing the positive impact on the cost of goods and services on the long run.”

On his part, the Executive Secretary of the Major Energies Marketers Association of Nigeria, Clement Isong, said, “I have not heard about it yet. But I will be excited if it is true. It is good news.”

IPMAN, which made the call for a reduction in diesel price during an interview with The PUNCH last week, had explained that the N1,225/litre price for the commodity from the indigenous refinery was high because the product was produced in Nigeria and not imported.

The Petroleum Products Retail Outlets Owners Association of Nigeria had 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.

Dealers in the downstream oil sector also stated that the registration process for marketers at the refinery was still ongoing, as many operators had continued to register with the plant.

It was further gathered that officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority were meeting with the management of the refinery to perfect the pricing template for products produced by the facility.

On January 12, 2023, the Dangote Petroleum Refinery announced the commencement of production of Automotive Gas Oil, also known as diesel, and JetA1 or aviation fuel.

The President, Dangote Group, Aliko Dangote, had in a statement issued by the firm, said, “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. This is a big day for Nigeria. We are delighted to have reached this significant milestone.

“This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. This is a game changer for our country, and I am very fulfilled with the actualisation of this project.”

Following that announcement seven major oil marketers in Nigeria had registered with the refinery for the lifting and distribution of refined petroleum products produced by the plant.

The seven major marketers include 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.

The refinery would supply fuel to about 150,000 retail outlets operated by the Independent Petroleum Marketers Association of Nigeria following a meeting between the management of the refinery and executives of IPMAN.

But some Nigerians have expressed concern over the supply of crude to the plant in dollars, and whether this could make the managers of the refinery to sell refined products in dollars, since the plant is located in the free trade zone.

The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos, Nigeria.

Responding to the an enquiry on whether the plant would dispense its products in dollars, the National Public Relations Officer, IPMAN, Chief Ukadike Chinedu, admitted that it was true that crude oil, being an international commodity, was sold to the plant in dollars.

He, however, said that this would not make the plant to sell refined petroleum products to the Nigerian market in dollars, stressing that other businesses operated in Nigeria by Africa’s richest man were carrying out their transactions in naira.

“The legal tender in Nigeria is the naira. The cement being sold by Dangote Cement is done in naira, not in dollar. The spaghetti and other essential commodities that he is involved in are all sold in naira. So why should one think that he will now sell fuel in dollars? Except for the offshore sales for those who want to move the refined products out of Nigeria using vessels to transport them to other countries. Such customers may get theirs in dollar equivalent,” Ukadike stated.

He, however, noted that another important thing was for the Nigerian government to be able to close up the widening gap in the foreign exchange rate.

“If the exchange rate for the dollar is low, petroleum products would have been cheap in Nigeria, because the products are imported. So I believe that Dangote will definitely sell the products in our local currency, which is naira,” he stated.

Asked if marketers had been briefed on whether products would be sold in naira or dollars, considering the fact that crude was supplied to the plant in dollars, Ukadike replied, “No, the pricing template has not come out. What is going on now is legislation. The template is not yet out.

“And I must state that there is no way the NNPC will bring out its template in naira and Dangote will bring out its own in dollars. It is not possible! So for the cost of their products, I think they are still trying to fix the prices with the regulatory agencies of the Federal Government.

“They will also look at the feasibility of the market and other factors, before announcing their prices for diesel and aviation fuel, which are the products they are producing now. So the price is not out, for once it is out, you’ll be informed.”

Ukadike also stated that more oil marketers were registering with the refinery, adding that IPMAN had been at the forefront of the registration process

“More applications for registration are being sent to the refinery by marketers and I think the process has been ongoing for some time now. It is a good thing for the country to have a refinery that refines its crude domestically,” the IPMAN official stated.

Another major marketer confirmed that the pricing template for refined products from the facility has not been released yet, but noted that there had been a series of meetings with the regulators on this.

Asked whether the pricing template for refined products had been released, the dealer, who pleaded not to be named due to lack of authorisation, replied, “No, not yet. We have not received any template yet, not to my knowledge.

“But it is possible that the template should be out soon because various meetings by officials of the refinery with dealers and regulators have been ongoing lately. The meetings are to give insights about activities at the plant. And I believe the template is going to be in naira.”

The Dangote Petroleum Refinery is an industrial plant that transforms crude oil into various usable petroleum products such as diesel, gasoline, jet fuel and kerosene.

Dangote Petroleum Refinery with a capacity to refine 650,000 barrels of crude oil per day covers an area of approximately 2,635 hectares in the Lekki Free Trade Zone in Lagos.

The refinery has so far received six million barrels of crude oil at its two SPMs located 25km from the shore. The first crude delivery was done on December 12, 2023, and the 6th cargo was delivered on January 8, 2024.

The refinery can load 2,900 trucks a day at its truck-loading gantries. The products from the refinery will conform to Euro V specifications, according to the firm.