Oil marketers have clarified that refined petroleum products from the $20 billion Dangote Petroleum Refinery will be sold in naira, debunking speculations of transactions in United States dollars, News About Nigeria reports.
Dealers in the oil sector stated that the registration process for marketers at the refinery is ongoing, with many operators actively registering with the plant.
Officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority are reportedly in discussions with the refinery’s management to finalise the pricing template for the products produced by the facility.
The Dangote Petroleum Refinery, on January 12, 2023, announced the commencement of production of automotive gas oil (diesel) and JetA1 (aviation fuel).
Aliko Dangote, the President of Dangote Group, expressed delight at reaching this milestone and highlighted the project’s importance for Nigeria.
Following this announcement, seven major oil marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail, registered with the refinery for the lifting and distribution of refined petroleum products.
Concerns were raised by some Nigerians about the supply of crude to the plant in dollars, sparking speculation that the refinery might sell refined products in dollars, given its location in the free trade zone.
Responding to the concerns, Chief Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), clarified that while crude oil, being an international commodity, is purchased in dollars, the legal tender in Nigeria is the naira.
He said that other businesses operated by Aliko Dangote in Nigeria conduct their transactions in naira.
Ukadike stated, “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.”
He added that the pricing template for the refined products has not been released yet, and discussions are ongoing with regulatory agencies to determine the prices in compliance with the laws of the Federal Government.
The Dangote Petroleum Refinery, located in the Dangote Industries Free Zone, Ibeju-Lekki, Lagos, is a 650,000 barrels per day crude oil refinery.
It has received six million barrels of crude oil since its first delivery on December 12, 2023.
