Dangote Petroleum Refinery has entered into a bulk purchase agreement with Heyden Petroleum and Ardova Plc to ensure a steady supply of affordable Premium Motor Spirit (PMS) across Nigeria. This collaboration is part of the efforts to stabilize the nation’s fuel market and enhance energy security, supported by President Bola Tinubu’s crude-for-naira swap initiative.
The agreement allows the two companies to secure a consistent and reliable supply of petroleum products from Dangote’s refinery, the world’s largest single-train refinery. As a result, consumers will benefit from affordable and stable fuel prices nationwide.
In a move that mirrors MRS Oil Nigeria Plc’s similar agreement with the Dangote refinery, the partnership aims to eliminate price disparities between states. MRS Oil recently reduced its fuel prices to N935 per litre nationwide, which led to an increase in its stock value. This arrangement ensures that both Ardova and Heyden have access to a full range of refined products, fostering a competitive environment in Nigeria’s downstream oil sector.
Ardova Plc has been a long-time off-taker from Dangote Refinery and views this new framework as an opportunity to strengthen their relationship and create long-term benefits. With over 1,000 retail outlets, the partnership is expected to alleviate Nigeria’s recurring fuel scarcity issues and promote price consistency, even during high-demand periods like festive seasons.
The Dangote Refinery’s operations, which began production in 2024, have already contributed to mitigating fuel shortages and price hikes, ensuring smoother operations in Nigeria’s fuel market.