Dangote Refinery, alongside Heyden Petroleum and Ardova Plc, enters bulk purchase agreement to provide Nigeria with steady, affordable fuel supply.
[dropcap]I[/dropcap]n a bid to address the ongoing fuel crisis and stabilise Nigeria’s fuel market, the Dangote Petroleum Refinery has announced that Heyden Petroleum and Ardova Plc have joined forces with them to ensure the continued supply of affordable Premium Motor Spirit (PMS) across the country.
The partnership, revealed in a statement from Dangote Refinery on Thursday, comes in the wake of the economic relief spurred by President Bola Tinubu’s crude-for-naira swap initiative.
Also read: Dangote refinery cuts ex-depot rates, petrol price drops N935
This deal, which sees the two companies enter into a bulk purchase agreement with the Dangote Refinery, is designed to ensure a steady supply of petroleum products at competitive prices, ultimately bolstering energy security for Nigerian consumers.
“This strategic move is designed to ensure a steady supply of petroleum products at affordable prices, further stabilising the nation’s fuel market and enhancing energy security for consumers,” the statement read in part.
This announcement follows a similar arrangement that had been made between Dangote Refinery and MRS Oil Nigeria Plc, which led to a reduction in fuel prices to N935 per litre across MRS Oil’s stations nationwide.
The pricing shift helped address the long-standing issue of price disparities between states. As a result, MRS Oil’s stock surged to a 52-week high, reflecting investor confidence in the company’s improved earnings outlook.
The agreement with Heyden Petroleum and Ardova Plc will guarantee that both companies can access a reliable, consistent supply of petroleum products from the Dangote Refinery, the world’s largest single-train refinery.
The partnership aims to further stabilise Nigeria’s fuel market by ensuring a consistent supply at competitive prices, benefiting consumers nationwide.
In addition to securing a dependable supply chain, the arrangement will provide both companies with a full range of refined products.
The long-term nature of the deal is expected to strengthen both companies’ operations, while also contributing to a more competitive downstream oil and gas sector in Nigeria.
Ardova Plc, a key off-taker from Dangote Refinery, welcomed the agreement, emphasising its significance in creating a more competitive environment within the Nigerian fuel industry.
The company highlighted that this new framework will institutionalise a robust relationship, benefiting both parties and contributing to the nation’s growing energy security.
“The partnership with the Dangote refinery is poised to have a transformative impact on Nigeria’s oil and gas market.
By ensuring a stable and affordable supply of fuel products in the over 1,000 retail outlets of the two companies, the agreement will help to alleviate the recurring issue of fuel scarcity that has long plagued Nigeria,” the statement from Ardova read.
Since its production began in 2024, the Dangote Refinery has been instrumental in addressing fuel shortages and price hikes that have plagued the country for years.
By ensuring a steady fuel supply, the refinery has helped reduce the supply pressures that typically lead to price fluctuations and scarcity.
During the recent festive season, Nigerians experienced a smoother period, with stable fuel availability and no significant price increases at the pump.
“Unlike previous years, when the country faced fuel shortages and arbitrary price hikes during peak periods, the Dangote Refinery has significantly contributed to stabilising the market and maintaining price consistency,” the statement concluded.
Source: Read more at championnews.com.ng
