Taking advantage of President Bola Ahmed Tinubu’s crude-for-naira swap initiative, Heyden Petroleum, another major player in Nigeria’s downstream oil and gas sector, has entered into a bulk purchase agreement with the Dangote Petroleum Refinery, joining Ardova Plc, another major marketer.
The move is expected to ensure a steady supply of petroleum products at affordable prices, further stabilising the nation’s fuel market and enhancing energy security for consumers, while reducing pressure on foreign exchange rates and helping to check the surging inflation.
This development follows the example set by MRS Oil Nigeria Plc, which had previously entered into a similar agreement with Dangote Refinery, resulting to the recent slash in the company’s pump price to N935 per litre across its stations nationwide. addressing the long-standing issue of price disparities between states.
In the aftermath of the deal, according to a statement by the Dangote Group, the share price of MRS Oil surged to a new 52-week high last Friday, on the back of growing investor optimism about the company’s future earnings prospects.
Reports indicate that the bulk purchase agreement with Dangote Petroleum Refinery will enable both Ardova and Heyden to secure a reliable and consistent supply of petroleum products from the world’s largest single-train refinery, ensuring a stable supply of fuel at competitive prices, benefiting consumers across the country.
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.
A statement from Ardova Plc underscored the importance of this agreement in fostering a more competitive environment within Nigeria’s downstream oil and gas sector.
Ardova has been a key off-taker from the Dangote Refinery since its inception, but this new framework is expected to formalise and strengthen the partnership between the two companies, creating long-term benefits for both parties.
The Dangote Refinery, which began production in 2024, has already played a pivotal role in addressing these challenges. Its large-scale operations have helped alleviate the supply pressures that often lead to price hikes and fuel shortages.
During the festive season, Nigerians enjoyed a relatively smooth period, with stable fuel availability and no significant price increases at the pump. Unlike previous years, when the country faced fuel shortages and arbitrary price hikes during peak periods, the Dangote Refinery has significantly contributed to stabilising the market and maintaining price consistency.
