S.A, 6 Other African Countries Set To Benefit From Dangote Refinery’s Fuel Export As Market competition Heats Up

South Africa, 6 Other Countries Set to Export Fuel from Dangote Refinery as Competition Heats Up
South Africa, 6 Other Countries Set to Export Fuel from Dangote Refinery as Competition Heats Up

As Dangote refinery expands its reach across Africa, local marketers clash over pricing and push for import alternatives to ease fuel costs.

In a significant development for African energy markets, the Dangote Refinery and Petrochemical complex in Nigeria is set to begin fuel exports to South Africa, Angola, and Namibia, Saturday PUNCH has learned. The $20 billion Lekki-based facility, boasting a production capacity of 650,000 barrels per day, is in advanced discussions with these countries, with four more — Niger Republic, Chad, Burkina Faso, and Central African Republic — also negotiating fuel supply deals.

Ghana Eyes Reduced Fuel Imports from Europe

Ghana is one of the latest countries to show interest in purchasing petrol from the refinery, potentially ending its monthly $400 million fuel imports from Europe. Ghana’s National Petroleum Authority Chairman, Mustapha Abdul-Hamid, confirmed the negotiations, noting that an agreement could benefit both nations.

“Talks with Ghana, Angola, Namibia, and South Africa are at an advanced stage, while preliminary discussions are in progress with Niger, Chad, Burkina Faso, and the Central African Republic,”

a source disclosed.

Nigerian Marketers Push for Fuel Imports Amid Pricing Disputes

Despite the Dangote refinery’s supply potential, local marketers in Nigeria have resisted buying from the refinery, citing high prices. Instead, members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have opted to seek fuel imports, arguing that they can offer consumers more affordable petrol.

The marketers are awaiting approval from the Central Bank of Nigeria (CBN) for foreign exchange access and permits from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure regulatory compliance.

Regulatory Hurdles for Group Imports

The NMDPRA has stated that it cannot grant an import license to associations like IPMAN and PETROAN collectively, allowing only individual marketers to apply. “They must apply individually; there’s no provision for group licensing,” an anonymous NMDPRA source stated.

PETROAN: Dangote Trying to Monopolize the Market

In response, PETROAN’s National Public Relations Officer, Dr. Joseph Obele, alleged that Dangote is striving for market dominance. “Dangote wants to monopolize the market, closing all doors to competition,” he said. PETROAN is pressing for approval of its import license, promising Nigerians relief from high fuel prices if it can import cheaper fuel.

“We need support to dismantle monopolies, or Nigerians will continue to suffer from market restrictions,” Obele added.


Copyright 2024 REPORT AFRIQUE (RA). Permission to use portions of this article is granted provided appropriate credits are given to www.reportafrique.com and other relevant sources.This Article is Fact-Checked. See Policy.
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