Dangote Refinery opens Monday as marketers seek cheaper fuel

Oil marketers are optimistic that the Dangote Refinery would assist lower the price of petrol if the government deregulates the product as it starts operating tomorrow (Monday).

The Dangote Refinery, founded by Aliko Dangote, the richest man in Africa, is slated to be officially opened on May 22, according to an earlier report from CN

Bashir Ahmad, a presidential aide, had tweeted that President Muhammadu Buhari will carry out the inauguration.

“Efforts by the Federal Government to make Nigeria self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products have received a boost as the 650,000 barrels per day Dangote Refinery, the world’s largest single-train refinery, is set for inauguration on May 22nd, 2023, by President Muhammadu Buhari,” Ahmad announced.

The National President of the Independent Petroleum Marketers Association of Nigeria, Chinedu Okonkwo, discussed the potential effects of the facility during a media interview on Saturday.

He stated the refinery would not only increase employment but also lower the price of deregulated petrol.

He stated, “That refinery is going to create further hope for this nation. It will create a lot of jobs and ensure availability of products. The time spent in importing petroleum products will be eliminated and Nigeria will gain a lot from it, moving forward.”

On whether the facility would have an impact on petroleum products’ prices, Okonkwo said, “Dangote is a private businessman who is out to make money, but one thing is that if the petroleum business is deregulated, the products will be cheaper. This is because the cost of freight, carrying the crude and refining it and bringing it back as refined products will be addressed and that value alone will be an advantage for the country.”

When asked further to explain whether this implied that petrol would be cheaper once deregulated and the refinery starts producing, the IPMAN president replied, “Yes, at least it will reduce the stress around availability and affordability.”

Okonkwo encouraged oil marketers to support the Dangote Refinery, noting that the facility would not only attract more revenue to operators, but would serve for the betterment of all Nigerians.

“It is our own, because what is needed mostly by my members is the availability of products so that as we make a living from the business of selling petrol, it will help everybody in the system,” Okoronkwo stated.

An integrated refinery project with a capacity of 650,000 barrels per day is being built in the Lekki Free Zone of Lagos, Nigeria, and is expected to cost over $19 billion. It is anticipated to be both the largest single-train facility in the world and the largest oil refinery in Africa.

According to the company’s website, the refinery will produce enough of each refined product to cover all of Nigeria’s needs while also having a surplus for export.

Nigerians, business owners, government representatives, and other stakeholders had all expressed excitement and anticipation following the announcement that the facility would officially open on May 22.