How to Buy Diesel in Nigeria: A Guide to Buying Diesel at the Dangote Refinery

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Nigeria is currently the second largest producer of crude oil in Africa and the seventh largest globally. The country is home to some of the largest oil refineries in the world, with a combined processing capacity of nearly 1.5 million barrels per day. But in order for those refineries to be profitable and continue to operate, Nigeria needs a large supply of diesel for local consumption, as well as international exports. And that’s where Mr. Billionaire comes in… Mr. Dangote (a nickname given to Aliko Dangote because he is estimated to be worth $10 billion) recently opened his own refinery and has promised that it will lead to lower diesel prices for Nigerians. So if you’re looking for how to buy diesel at the Dangote Refinery, this blog post will tell you everything you need to know!

What is the Dangote Refinery and how will it impact local consumers?

The Dangote Refinery, located in the city of Lagos, is capable of producing 400,000 barrels of petrol per day, 420,000 barrels of diesel per day, and 110,000 barrels of kerosene per day. It is the first refinery to be built in Nigeria in 27 years and it is projected to have a total investment of approximately $9 billion. The refinery will be able to produce products primarily for the domestic market as well as for export. With the recent drop in the price of crude oil in the global market, it makes sense for Dangote to begin further investing in the local refinery and production of diesel at the refinery will help to lower the current high retail price of diesel in Nigeria. The refinery will also be able to produce gasoline, kerosene and fuel oil domestically. In the past, Nigeria has had to import a majority of its diesel and gasoline supplies as the country only has a few large, ageing refineries to produce domestic fuel supplies.

How and Where to Buy Diesel at the Dangote Refinery

The Dangote Refinery is currently in the process of launching operations and will begin supplying diesel to the refinery by the end of 2018. The refinery will be able to produce 420,000 barrels of diesel per day. The location of the Dangote Refinery makes it convenient for Nigerians to purchase diesel from the refinery. The refinery is located in the outskirts of the city of Lagos and is accessible by road, rail and water. The following table from the Dangote Refinery website shows the arrival and departure times for the facility. The refinery also accepts bulk purchases from individuals, commercial and government customers. Dangote Diesel is the brand name for the diesel product that will be supplied by the Dangote Refinery.

How Much Does Dangote Refinery Pay for Diesel?

The refinery will pay a premium price for diesel, which is the price that commercial importers normally pay. This price is known as the “delivered-to-terminal” (DTW) price and it is the highest price paid for crude oil. As a domestic refinery, the Dangote Refinery will buy crude oil from the Nigerian National Petroleum Company (NNPC) and will pay a $50 per barrel premium above the global price. This translates to around $38 per barrel for a refined diesel product. The refinery will also pay a 6.5% sales tax on the price of each barrel. This means that Dangote will pay around $38.30 per barrel for the diesel product and will sell the refined product at $50 a barrel.

The Difference Between Wholesale and Retail Price of Diesel

The cost of producing one barrel of diesel is around $38.30, meaning that the refinery will be able to make a profit of around $11.70 per barrel. The refinery will sell the diesel at a premium price of $50 per barrel. The difference between the wholesale and retail prices of diesel is referred to as the “mark-up” and government officials have estimated that the refinery will make a profit of $12 billion per year. The refinery will also pay a 6.5% sales tax on the retail price of each barrel, which will generate a total of $17.15 per barrel. The refinery will also pay a government royalty of 5% on the total profit of the refinery. The government royalty is a tax on the overall profit of the refinery and it will be used to fund the nation’s development.

Nigeria currently imports 80% of its diesel supply. So why not build a refinery?

Nigeria currently imports 80% of its diesel supply from other countries, a percentage that has increased significantly over the past few years. The price of diesel in Nigeria has risen drastically as a result of the dependence on imported diesel, which costs approximately $100 per barrel. The government has estimated that the country spends a total of $19 billion per year on diesel imports. This has led to low government revenues, a shortage of fuel for both commercial and domestic use and high diesel prices for consumers. With the country’s high dependence on imported diesel and a lack of refining capacity, it makes sense for the country to begin to build a refinery. This will allow the country to produce its own supply of diesel and gasoline locally and bring down the price of diesel in the country significantly.

What are the benefits of building a local refinery for Nigerian consumers?

One of the main benefits of building a local refinery for Nigerian consumers is a reduced cost of diesel. The Dangote Refinery will produce a refined product at a lower cost than imported diesel, meaning that local consumers will be able to purchase diesel at a lower price. The refinery will also create thousands of jobs and will be a large source of employment for the people of Lagos. The refinery will also be a significant source of government revenue, especially if the government chooses to raise the tax on the refinery’s profits. The government will be able to collect a higher tax on the refinery’s profits and this will help to offset the costs of maintaining the refinery. The government will also be able to bring in more revenue from the export of refined products.

However, there is some bad news…

The refinery will produce refined products primarily for the domestic market, meaning that the products will not be exported. This means that there will only be a small amount of products available for export and a high demand will drive up the price of products. The refinery will also produce a large amount of sulphur, which is not ideal for use in the aviation industry. Production of large amounts of sulphur will also create additional pollution and will have a negative impact on the local environment.

Bottom line

The Dangote Refinery will be a major source of employment and will create a large amount of wealth for the people of Lagos. The refinery will also be a major source of government revenue and will help to reduce the cost of diesel for consumers. The refinery will produce a large amount of sulphur, which is not ideal for use in the aviation industry, meaning that the products will not be as easily exported as they would be if they didn’t contain significant amounts of sulphur. The refinery will produce a refined product at a lower cost than imported diesel and will be a major source of revenue for the government. The refinery will also create thousands of jobs and will be a major source of employment for the people of Lagos.