The Dangote Petroleum Refinery says Heyden Petroleum and Ardova Plc have joined it to make sure the availability of reasonably priced Premium Motor Spirit (petro) in Nigeria.
The Dangote refinery in an announcement on Thursday, stated the 2 corporations, propelled by the financial reduction offered by President Bola Tinubu’s crude-for-naira swap initiative, entered right into a bulk buy settlement with the refinery.
“This strategic transfer is designed to make sure a gentle provide of petroleum merchandise at reasonably priced costs, additional stabilising the nation’s gasoline market and enhancing vitality safety for customers,” the assertion learn partly.
Based on the corporate, the event adopted the instance set by MRS Oil Nigeria Plc, which had beforehand entered into an identical settlement with Dangote Refinery.
In consequence, MRS Oil not too long ago lowered its gasoline costs to N935 per litre throughout all its stations nationwide, addressing the long-standing challenge of value disparities between states.
“Moreover, MRS Oil’s inventory surged to a brand new 52-week excessive final Friday, as traders grew to become more and more optimistic concerning the firm’s future earnings prospects,” Dangote said in its assertion.
The assertion disclosed that the majority buy settlement with Dangote refinery will allow each Ardova and Heyden to safe a dependable and constant provide of petroleum merchandise from the world’s largest single-train refinery.
This can guarantee a secure provide of gasoline at aggressive costs, benefiting customers throughout the nation.
“The association ensures that Ardova and Heyden can have entry to a full vary of refined merchandise, thereby securing their operations with a dependable provide chain,” it defined.
A press release from Ardova Plc not too long ago underscored the significance of this settlement in fostering a extra aggressive atmosphere inside Nigeria’s downstream oil and fuel sector.
Based on the assertion, Ardova has been a key off-taker from the Dangote refinery since its inception, however this new framework is anticipated to formalise and strengthen the partnership between the 2 corporations, creating long-term advantages for each events.
“This framework will see Ardova Plc offtake a full slate of petroleum merchandise from the refinery. Whereas Ardova Plc has been a big off-taker from the refinery since its inception, this new framework will institutionalise a extra strong relationship between the 2 corporations to additional improve the rising aggressive panorama within the downstream oil and fuel trade within the nation.
“The partnership with the Dangote refinery is poised to have a transformative impression on Nigeria’s oil and fuel market. By making certain a secure and reasonably priced provide of gasoline merchandise within the over 1,000 shops of the 2 corporations, the settlement will assist to alleviate the recurring challenge of gasoline shortage that has lengthy plagued Nigeria,” the corporate maintained.
The Dangote refinery, which started manufacturing in 2024, stated it has already performed a pivotal position in addressing the challenges of gasoline shortage.
Its large-scale operations had been stated to have helped alleviate the availability pressures that always result in value hikes and gasoline shortages.
Throughout this festive season, Nigerians loved a comparatively clean interval, with secure gasoline availability and no important value will increase on the pump.
“In contrast to the earlier years, when the nation confronted gasoline shortages and arbitrary value hikes throughout peak durations, the Dangote Refinery has considerably contributed to stabilising the market and sustaining value consistency,” the assertion concluded.