Dangote Refinery Partners with Ardova, Heyden to Deliver Affordable Fuel Across Nigeria
The Dangote Petroleum Refinery has announced partnerships with Heyden Petroleum and Ardova Plc to enhance the supply of affordable Premium Motor Spirit (petrol) across Nigeria.
In a statement released on Thursday, the refinery noted that the agreements, bolstered by President Bola Tinubu’s crude-for-naira swap initiative, represent a significant step towards addressing the nation’s fuel supply challenges.
“This strategic move is designed to ensure a steady supply of petroleum products at affordable prices, further stabilising the nation’s fuel market and enhancing energy security for consumers,” the statement read.
The partnerships follow a precedent set by MRS Oil Nigeria Plc, which recently entered into a similar agreement with the Dangote Refinery. The deal allowed MRS to reduce fuel prices to ₦935 per litre across its stations nationwide, tackling persistent disparities in fuel pricing between states.
“MRS Oil’s stock reached a new 52-week high last Friday, reflecting growing investor confidence in the company’s enhanced earnings potential,” the statement noted.
Securing Supply Chains and Competitive Pricing
The agreements will grant Ardova and Heyden consistent access to refined petroleum products from the Dangote Refinery, the world’s largest single-train refinery. This reliable supply chain aims to ensure competitive fuel pricing and benefit consumers nationwide.
“Ardova and Heyden will gain access to a full range of refined products, securing their operations with a dependable supply chain and fostering price stability,” the statement added.
Ardova Plc emphasised the transformative potential of the partnership in a separate statement, highlighting its commitment to fostering a more competitive downstream oil and gas sector.
“While Ardova Plc has been a significant off-taker from the refinery since its inception, this new framework formalises the relationship, creating long-term benefits for both companies and the wider market,” Ardova noted.
The agreements are expected to bolster fuel availability across over 1,000 retail outlets operated by the two companies, mitigating the recurring issue of fuel scarcity.
Stabilising the Market
Since beginning production in 2024, the Dangote Refinery has played a central role in alleviating Nigeria’s fuel supply challenges, reducing the pressures that typically lead to price hikes and shortages.
“This festive season, Nigerians enjoyed stable fuel availability without significant price increases— a stark contrast to previous years marked by shortages and arbitrary hikes during peak periods,” the statement observed.
The refinery’s large-scale operations have been instrumental in stabilising the market, delivering a consistent supply of fuel products at competitive prices.
“The partnership between the Dangote Refinery and its new bulk buyers marks a transformative chapter for Nigeria’s downstream oil and gas sector, offering consumers relief from fuel scarcity and ensuring a sustainable energy future,” the statement concluded.
