The Dangote Petroleum Refinery has announced a strategic partnership with Heyden Petroleum and Ardova Plc to bolster the supply of Premium Motor Spirit (PMS) at affordable prices across Nigeria.
In a statement released on Thursday, the refinery highlighted that this collaboration is driven by the economic relief measures under President Bola Tinubu’s crude-for-naira swap initiative.
The two companies have signed a bulk purchase agreement with the refinery, ensuring a steady and reliable supply of petroleum products.
“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 read.
This development mirrors an earlier agreement between the Dangote Refinery and MRS Oil Nigeria Plc, which resulted in MRS reducing its fuel prices to ₦935 per litre nationwide.
This move has addressed price disparities between states and boosted investor confidence, as evidenced by a surge in MRS Oil’s stock to a new 52-week high.
The agreement with Heyden Petroleum and Ardova Plc promises similar benefits.
According to the refinery, the deal will enable the companies to secure a consistent and reliable supply of refined petroleum products from the world’s largest single-train refinery.
“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 added.
Ardova Plc underscored the agreement’s importance in fostering a competitive downstream oil and gas sector.
The company noted that while it has been a significant off-taker of Dangote’s products since the refinery’s inception, this formalized framework would strengthen its operational efficiency and ensure long-term benefits.
“This framework will institutionalize a more robust relationship between the two companies, enhancing the competitive landscape in the downstream oil and gas industry,” Ardova Plc stated.
The partnership is expected to transform Nigeria’s oil and gas market by alleviating fuel scarcity and stabilizing prices.
With over 1,000 retail outlets between Ardova and Heyden Petroleum, the agreement aims to ensure an uninterrupted and affordable supply of fuel products nationwide.
Since commencing production in 2024, the Dangote Refinery has played a pivotal role in addressing Nigeria’s fuel scarcity challenges.
Its large-scale operations have eased supply pressures, reducing the likelihood of price hikes and shortages.
This festive season, Nigerians experienced a relatively smooth period, with stable fuel availability and no significant price surges.
The refinery attributed this stability to its operational efficiency and commitment to market stabilization.
“Unlike previous years, when fuel shortages and arbitrary price hikes marred peak periods, the Dangote Refinery has significantly contributed to market stability and price consistency,” the statement concluded.
This landmark partnership signifies a step forward in ensuring energy security and affordability for Nigerian consumers while positioning the Dangote Refinery as a cornerstone of the nation’s energy sector.