More marketers join Dangote Refinery to crash fuel price

More fuel marketers are beginning to align with the Dangote Refinery to ensure a steady supply of petroleum products at affordable prices to Nigerians.

Few weeks after the strategic agreement with MRS Oil Nigeria Plc, which saw the company selling Premium Motor Spirit (PMS), otherwise known as petrol at cheaper rate compared toothers, more petroleum marketers have continued to strike deal with the refining giant to boost their sales and crash prices.

The Guardian gathered that many of the fuel marketers are currently about entering into a strategic deal with Dangote Refinery in their quest to increase market share.

One of the companies that has been successful in striking a deal with Dangote Refinery is
Ardova Plc, while reports indicate that Heyden Petroleum has followed suit.

Ardova Plc confirmed it has entered into a bulk purchase agreement with the Dangote Petroleum Refinery.

According to the company, the strategic move was 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.

Head of Brands and Corporate Communications, Ardova Plc, Grant Onome, in a statement, said his company has agreed on a bulk purchase framework with Dangote Refinery to guarantee supply security at affordable prices for its customers.

Onome said: “This framework will see Ardova Plc offtake a full slate of petroleum products from the refinery. While Ardova Plc has been a significant off taker from the refinery since its inception, this new framework will institutionalise a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry in the country.

“This framework is in line with President Tinubu’s drive for competition and improved efficiency in the industry and will see Ardova Plc deliver products at competitive prices nationwide,” he stated.

Many Nigerians enjoyed reduced priced of fuel during the yuletide period as PMS sold for as low as N940 and N950 per liter at some filling stations.

This development was sequel to the MRS deal which lowered its fuel prices to N935 per litre across all its stations nationwide, addressing the long-standing issue of price disparities between states.