Dangote Refinery in advanced talks with 8 African countries over fuel supply deals

According to The Punch, the refinery’s management is at the advanced stages of negotiations with South Africa, Angola, Niger Republic, Chad, Burkina Faso and Central Africa Republic and Namibia to start lifting fuel.

Apart from Premium Motor Spirit (PMS), the refinery has already started exporting diesel fuel to several African countries, with a significant increase in May, reaching nearly 100,000 barrels per day. Additionally, aviation fuel exports from the refinery have also risen.

While speaking during the commencement of petrol production by the refinery in September, the chairman of the Dangote Group, Aliko Dangote said the refinery is ready to serve the local and regional markets with petrol, diesel and other products like polypropylene.

“This Refinery will change Nigeria and Africa’s Oil and Gas Industry dynamics. Meeting the demands of the Sub-Saharan African region. We have good petrol that guarantees the engines of vehicles last longer as the quality matches global standards,” Dangote noted.

Last month, Ghana had announced its readiness to purchase fuel from the Dangote refinery.

Mustapha Abdul-Hamid, chairman of Ghana’s National Petroleum Authority disclosed this at the OTL Africa Downstream Oil Conference in Lagos adding that the deal could save Ghana approximately $400 million in monthly fuel imports from Europe.

Dangote Refinery and Nigerian petroleum marketers are currently at odds over pricing disputes, with marketers accusing the refinery of setting high petrol prices.

Additionally, the marketers have also shown a preference for importing petrol rather than buying from Dangote Refinery due to the pricing challenges.

However, as Dangote Refinery reaches full capacity and negotiates competitive pricing, Nigerian marketers may shift towards local procurement if the refinery can offer favorable terms, reliable supply, and efficient distribution.