The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has finalized an agreement with the Dangote Petroleum Refinery to directly lift petroleum products for nationwide distribution to its members’ depots and retail outlets. The move aims to ensure a steady supply of fuel during the yuletide season and beyond.
The announcement came shortly after the Independent Petroleum Marketers Association of Nigeria (IPMAN) secured a similar deal with the $20 billion Lekki-based refinery, marking significant strides in the distribution of petroleum products across Nigeria.
In a statement issued on Friday, December 6, 2024, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, revealed that the agreement followed successful negotiations led by the association’s President, Dr. Billy Gillis-Harry. The meeting, held on December 2 at the Dangote Refinery complex in Lagos, resulted in terms including reserved monthly volumes for PETROAN, favorable pricing, and payment modalities.
“The agreement establishes a direct buyer-seller relationship, eliminating middlemen to ensure affordability and availability of products for Nigerians,” the statement said. PETROAN assured the public that the collaboration, coupled with production from the Dangote Refinery and the Port Harcourt Refinery, would avert fuel shortages during the festive season.
### *Port Harcourt Refinery Commences Product Export*
In a related development, the recently rehabilitated Port Harcourt Refinery has started exporting refined petroleum products. Its first cargo of low-sulfur straight-run fuel oil (LSSR) was sold to Dubai-based Gulf Transport and Trading Limited. The shipment is being loaded onboard the *Wonder Star MR1*, marking the refinery’s initial foray into international markets.
The refinery, which resumed operations on November 26, 2024, is currently operating at 70% capacity with a 60,000 barrels-per-day section. According to Kpler, a data and analysis company, the refinery is expected to stabilize production at approximately 60,000 metric tonnes per month while its larger 150,000 barrels-per-day section remains offline pending further upgrades.
### *Stakeholder Reactions*
While the partnership with Dangote Refinery is widely viewed as a step toward reducing fuel scarcity, reactions to the Port Harcourt Refinery’s export activities have been mixed. Some industry operators question the refinery’s capacity to support both local demand and international shipments.
Local activities at the Port Harcourt Refinery are reportedly gaining traction, with trucks now lifting petrol at an increased pace after an initial calibration phase. However, independent marketers have expressed concerns about pricing, leaving only major marketers such as NNPC Retail and Oando to patronize the facility at this time.
### *Impact on Fuel Supply*
With the combined output of the Dangote and Port Harcourt refineries, stakeholders anticipate improved efficiency in fuel distribution. PETROAN has urged consumers to avoid panic buying and reassured the public of sufficient supply during the festive season, emphasizing the safety risks of storing petroleum products at home.
These developments reflect a broader effort to reposition Nigeria’s downstream sector, with the potential to reduce dependency on imports and enhance economic growth through localized production and distribution.
