Dangote signs off-take agreement with marketers to distribute 60-65m litres of petrol daily
The Dangote Refinery and Petrochemicals has signed an off-take agreement with some marketers to supply between 60 and 65 million litres of petrol daily across the country, exceeding the daily local consumption.
Under the agreement, the excess of between 15 and 20 million litres of petrol will be exported.
“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market. Any surplus, estimated at between 15 and 20 million litres, will be exported,” the company said.
Aliko Dangote, the Group Chief Executive, disclosed this in a statement on Tuesday, confirming that the offtake agreement had been concluded with selected marketers.
“We have agreed an offtake framework to supply up to 65 million litres daily for the domestic market; any surplus, estimated at between 15 and 20 million litres, will be exported,” he said.
According to the statement, the agreement is to prevent supply disruptions and eliminate speculative practices, reduce hoarding, and support price stability.
It is also conserve foreign exchange, improve Nigeria’s trade balance and strengthen external reserves.
The new agreement, endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is also a strategic step by the company to deal with its excess production which is far higher than the local consumption capacity.
Some of the selected marketers are MRS, NNPC Retail, TotalEnergies, Rainoil, Ardova Plc, Bovas, AA Rano, AYM Shafa, Conoil, and Masters Energy.
