Oil Companies and Dangote Sign Deal for Affordable Petrol Supply
The Dangote Petroleum Refinery has announced a new partnership with Heyden Petroleum and Ardova Plc to ensure the supply of affordable petrol in Nigeria. This agreement, driven by President Bola Tinubu’s crude-for-naira swap initiative, aims to stabilize the fuel market and provide energy security for consumers.
In a statement released on Thursday, the refinery highlighted that this bulk purchase deal will guarantee a steady and reliable supply of Premium Motor Spirit (PMS) at competitive prices. The move follows a similar agreement with MRS Oil Nigeria Plc, which recently reduced its fuel price to N935 per litre nationwide. This price adjustment has addressed longstanding issues of regional disparities and boosted investor confidence in MRS Oil, leading to a significant rise in its stock value.
The new agreement allows Ardova and Heyden to access a consistent supply of refined products from the Dangote Refinery, the world’s largest single-train refinery. This collaboration is expected to enhance the operations of both companies, ensuring consumers across Nigeria benefit from stable fuel availability and competitive pricing.
Ardova Plc expressed optimism about the deal, emphasizing its role in fostering a more competitive oil and gas sector in Nigeria. According to the company, the agreement formalizes and strengthens its partnership with the Dangote Refinery, ensuring long-term benefits for both parties.
“This framework will enable Ardova Plc to secure a full range of petroleum products from the refinery. It also creates a more robust relationship between the two companies, enhancing competition in Nigeria’s downstream oil and gas industry,” the statement read.
The partnership is expected to significantly impact Nigeria’s oil market by addressing recurring issues such as fuel scarcity. With over 1,000 retail outlets between Ardova and Heyden, the agreement promises to maintain stable fuel supplies, especially during peak periods.
Since beginning production in 2024, the Dangote Refinery has played a key role in stabilizing Nigeria’s fuel market. Its large-scale operations have eased supply pressures, reducing price hikes and shortages. During the festive season, Nigerians enjoyed stable fuel availability without the usual price increases, a stark contrast to previous years.
The refinery’s efforts have been instrumental in ensuring price consistency and market stability, providing much-needed relief to Nigerian consumers.
