Ardova, Heyden Partner with Dangote Refinery to Ensure Affordable Fuel for Nigerians
In a bid to bolster Nigeria’s energy security and stabilize fuel prices, Ardova Plc and Heyden Petroleum have entered into a bulk purchase agreement with Dangote Petroleum Refinery. This initiative is part of the economic relief measures introduced by President Bola Ahmed Tinubu’s crude-for-naira swap policy.
The partnership is designed to ensure a steady supply of petroleum products at competitive prices, enhancing affordability for consumers and strengthening the nation’s downstream oil and gas sector.
This development mirrors a similar agreement between MRS Oil Nigeria Plc and Dangote Refinery. Following the deal, MRS Oil recently reduced its pump price to ₦935 per litre across its stations nationwide, addressing price disparities and gaining investor confidence, as evidenced by its stock hitting a 52-week high.
Ensuring Fuel Availability and Price Stability
The agreement allows Ardova and Heyden Petroleum to secure consistent supplies of refined petroleum products from the world’s largest single-train refinery. This ensures stability in the fuel supply chain, benefiting consumers and alleviating the long-standing issue of scarcity.
Ardova Plc emphasized the strategic importance of this partnership, noting its potential to create a more competitive environment in Nigeria’s downstream sector.
“This framework will institutionalize a more robust relationship between Ardova Plc and Dangote Refinery, enhancing the competitive landscape in the downstream oil and gas industry,” Ardova stated.
Impact on the Nigerian Fuel Market
With over 1,000 retail outlets under Ardova and Heyden Petroleum, the agreement is expected to alleviate recurring fuel shortages and stabilize prices. This initiative aligns with the Dangote Refinery’s commitment to addressing Nigeria’s fuel supply challenges since commencing operations in 2024.
During the recent festive season, Nigerians experienced stable fuel availability and price consistency, marking a significant departure from past trends of shortages and arbitrary price hikes during peak demand periods.
Dangote Refinery’s Role in Market Transformation
The Dangote Refinery, a key player in Nigeria’s oil and gas sector, continues to influence the market positively. Its large-scale operations have eased supply pressures, ensuring a reliable flow of petroleum products across the country.
As the refinery solidifies partnerships with key players like Ardova and Heyden, its transformative impact on Nigeria’s energy landscape becomes increasingly evident, fostering affordability and reliability for consumers nationwide.
Source: Dangote Corporate Communications
