Dangote Refinery is poised to begin distributing its refined petrol to retail outlets throughout Nigeria starting this Sunday, according to findings from BrandIconImage.

Insiders have indicated that the retail price of petrol will remain stable, even with the introduction of Dangote's product into the market. The refinery's initial daily allocation is projected to be 25 million litres, which will be supplied through NNPC Trading Limited at a price of N765.99 for marketers.

A source noted, "NNPC Trading Limited will continue to import an additional 15 million litres to satisfy Nigeria's daily petrol demand, which is estimated between 40 and 50 million litres." 

Furthermore, each marketer is permitted to take a maximum of 50 trucks daily, purchasing at N765.99 through NNPC Trading Limited, which includes their transportation costs, and selling at the prevailing pump price of N855 to N897 per litre, depending on the location.

To ensure a seamless transition, marketers have been directed to begin sending their trucks to the refinery today to facilitate the loading process.

Additionally, it was mentioned that next month, Dangote Refinery will increase its daily allocation to 30 million litres, after which marketers will begin picking up supplies via vessels.

Reports indicate that a joint statement will be released by both NNPC and Dangote refinery teams, who are currently convening in Abuja.

This initiative is anticipated to significantly enhance the nation’s fuel supply and ease the difficulties faced by consumers.

Located in the Lekki Free Trade Zone in Lagos, Dangote Refinery represents a significant achievement in Nigeria's industrialization efforts. Its operation is expected to diminish the country's reliance on imported petroleum products and foster economic development.

Dangote's production is anticipated to significantly influence trade worth billions of dollars in fuel markets both regionally and internationally, as Nigeria continues to be a major consumer of fuel, importing nearly 250,000 barrels daily last year, primarily from Europe, according to analytics firm Vortexa Ltd. 

For many years, European refiners have capitalized on a profitable market in Nigeria, where an inconsistent power supply from the national grid compels businesses in Africa's fourth-largest economy to depend heavily on imported refined products, amounting to a net value of $17 billion each year.

Recent trading and shipping data reviewed by BusinessDay indicates that Nigeria's new Dangote refinery is increasing its gasoil exports to West Africa, thereby taking market share from European refiners.

"Andon Pavlov, an analyst at Kpler, a global trade intelligence platform, noted that as much as 300,000 to 400,000 barrels per day of refining capacity in Europe could face closure due to the surge in global gasoline production."