Vitol, Trafigura, BP begins shipment of Dangote fuel

Dangote Refinery has commenced fuel shipments, with Vitol Group, Trafigura Group, and BP leading as primary buyers as brokering a deal with Nigerian marketers drags on.

Since ramping up operations in mid-2024, the refinery has processed around 650,000 barrels per day, with October showing an average daily shipment rate of 35,000 tons.

Data by Precise indicates that the refinery has already loaded almost 6 million tons of fuel, equivalent to approximately 45 million barrels. Diesel and fuel oil make up over 60% of these shipments, with gasoline and jet fuel also being produced.

The report indicates that Vitol and Trafigura, international oil traders, are the dominant buyers of Dangote refinery’s petroleum products.

Vitol is a global energy and commodities trading company in Rotterdam, Netherlands. It has its operations worldwide, with major offices in Geneva, Houston, London, and Singapore.

Trafigura has its headquarters in Singapore but operates in over 50 countries.

Meanwhile, BP Plc is a British oil trading company that operates across various countries.

Precise figures show that automotive gasoil — diesel — is the biggest cargo type being lifted, followed by fuel oil. Together, they account for more than 60% of what’s being collected from the plant.

Since the refinery launch in May 2023, the Dangote facility is expected to influence regional fuel dynamics, alleviating Nigeria’s crude surplus and strengthening the local market.

Meanwhile, Dangote and the Nigerian oil marketers are yet to reach an agreement, as three major oil marketers in the country, asked the Federal High Court in Abuja to stop what they described as a plot by Dangote Petroleum Refinery and Petrochemicals FZE, to monopolise the energy sector of the economy.

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Dangote refinery began selling petrol to the Nigerian market in September, initially selling to the Nigerian National Petroleum Corporation (NNPC) Limited as the primary off-taker. However, the latest back and forth from both parties have limited oil sales to Nigerian marketers.

In an earlier statement, Aliko Dangote hinted that the marketers may be bypassing his refinery for imported petrol from foreign countries, arguing that the fuel scarcity in the country can be easily resolved if the marketers just come and purchase from him.

“We are producers. I have a refinery. I’m not in the business of retail. If I’m in the business of retail, then you can hold me responsible. But what I’m saying is that the retailers should please come forward and pick. If they don’t come forward and pick, what do you want me to do? There is nothing I can do,” Dangote said.