The Dangote Petroleum Refinery has announced a strategic partnership with Heyden Petroleum and Ardova Plc to ensure a steady supply of affordable Premium Motor Spirit (PMS) in Nigeria.
This partnership, facilitated by President Bola Tinubu’s crude-for-naira swap initiative, aims to stabilize the country’s fuel market and enhance energy security for consumers.
In a statement on Thursday, the refinery revealed that the bulk purchase agreement signed with the two companies will guarantee reliable access to petroleum products at competitive prices. This arrangement follows a similar agreement with MRS Oil Nigeria Plc, which had recently lowered its fuel prices to N935 per liter nationwide, helping address price disparities across the country.
MRS Oil’s recent price reduction and surge in stock value exemplify the positive impact of such agreements, as investors have shown increased optimism about the company’s future prospects. The Dangote refinery’s bulk purchase agreement with Ardova and Heyden will provide them with consistent access to refined products, ensuring the companies’ operations are supported by a reliable supply chain.
Ardova Plc, which has been a key off-taker from the Dangote refinery since its inception, emphasized the importance of this new framework in fostering competition within Nigeria’s downstream oil and gas sector. The enhanced partnership is expected to solidify the relationship between the two companies, creating long-term benefits for both.
Ardova also highlighted that this agreement will help address the recurring issue of fuel scarcity in Nigeria by ensuring stable and affordable fuel supply through the companies’ over 1,000 retail outlets nationwide.
The Dangote Refinery, which began production in 2024, has already contributed significantly to alleviating fuel supply pressures, helping to stabilize the market and prevent price hikes. During the festive season, Nigerians experienced smooth fuel availability with no significant price increases at the pump an improvement compared to previous years marked by fuel shortages and arbitrary price hikes.
The Dangote refinery’s operations are playing a crucial role in transforming Nigeria’s oil and gas market by ensuring that consumers have access to affordable and consistent fuel supplies, alleviating long-standing challenges in the sector.
