Dangote Refinery Secures Deal to Supply 28m Litres of Petrol Daily for Domestic

Dangote Refinery has reached a pivotal milestone in its operations, securing a deal to supply 28 million liters of petrol daily to the Nigerian domestic market. This move is set to significantly boost local fuel distribution and reduce Nigeria's reliance on imported petroleum products. The refinery, which began processing petrol in September, initially set its production target at 25 million liters per day, with plans to gradually ramp up to 35 million liters. This deal with marketers, however, will help meet the country's daily fuel demand, which stands between 45 and 50 million liters.

As part of this agreement, Dangote has signed a contract with the Independent Petroleum Marketers Association of Nigeria (IPMAN), aiming to supply 60 million liters of petrol weekly. This will ensure that a substantial portion of the fuel needs of the domestic market is met directly from the refinery, eliminating the need for third-party imports. This deal is poised to streamline the fuel distribution process, as IPMAN members will be able to lift the product directly from Dangote Refinery without intermediary involvement, offering better logistical efficiency.

Furthermore, with a capacity to store up to 500 million liters of petrol, Dangote's refinery is already playing a critical role in stabilizing the Nigerian fuel market. The refinery's operations are expected to continue ramping up to meet domestic demand and alleviate fuel shortages that have plagued the country. Dangote has also emphasized that his refinery is prepared to handle Nigeria's petrol demand, urging local marketers to reduce their reliance on imports as his refinery begins to scale its operations.

The agreement marks a critical phase in Nigeria's push to reduce its dependency on fuel imports, a financial strain on the country. Dangote's refinery is positioned as a solution to address both domestic fuel scarcity and the financial burden of importing petrol, as it works towards full operational capacity to support the national market.

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