The Dangote Petroleum Refinery has announced partnerships with Heyden Petroleum and Ardova Plc to enhance the availability and affordability of Premium Motor Spirit (PMS), commonly known as petrol, across Nigeria.
In a statement released on Thursday, the refinery highlighted that the collaboration is driven by President Bola Tinubu’s crude-for-naira swap initiative, which has provided economic relief and bolstered local fuel supply chains. The two companies have entered into a bulk purchase agreement with the refinery, mirroring a similar deal previously made with MRS Oil Nigeria Plc.
“This strategic move is designed to ensure a steady supply of petroleum products at affordable prices, further stabilizing the nation’s fuel market and enhancing energy security for consumers,” the statement noted.
Addressing Fuel Scarcity and Price Stability
The partnership aims to mitigate long-standing challenges in Nigeria’s downstream oil and gas sector, including fuel scarcity and regional price disparities. MRS Oil, following its agreement with Dangote Refinery, recently reduced its fuel prices to ₦935 per litre nationwide. The move not only addressed price inconsistencies but also boosted investor confidence, with MRS Oil stocks reaching a 52-week high last week.
The bulk purchase agreements will enable Ardova and Heyden to secure consistent supplies of petroleum products from the world’s largest single-train refinery, ensuring stable and competitive pricing for Nigerian consumers.
“The arrangement ensures that Ardova and Heyden will have access to a full range of refined products, thereby securing their operations with a reliable supply chain,” the statement explained.
Strengthening Partnerships and Competitive Markets
Ardova Plc emphasized the importance of this agreement in fostering a more competitive downstream oil and gas market in Nigeria. While Ardova has been a significant off-taker from the Dangote Refinery since its inception, this new framework formalizes the relationship, creating long-term benefits for both parties.
“This framework will institutionalize a more robust relationship between the two companies to further enhance the emerging competitive landscape in the downstream oil and gas industry,” Ardova said.
The collaboration is expected to have a transformative impact, benefiting consumers through more than 1,000 retail outlets operated by Ardova and Heyden. By addressing the persistent issues of fuel scarcity and high prices, the agreement marks a critical step in stabilizing Nigeria’s energy sector.
A New Era of Fuel Stability
Since commencing production in 2024, the Dangote Refinery has played a pivotal role in addressing Nigeria’s fuel supply challenges. Its large-scale operations have alleviated pressures that previously led to shortages and price hikes.
During the festive season, Nigerians experienced a smooth period of stable fuel availability and consistent pricing, a sharp contrast to previous years marked by scarcity and inflated prices.
“Unlike previous years, the Dangote Refinery has significantly contributed to stabilizing the market and maintaining price consistency,” the statement concluded, signaling a promising shift in Nigeria’s energy sector.
