Dangote Refinery and Petroleum Marketers to Finalize Petrol Pricing
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is preparing for discussions with Dangote Petroleum Refinery to finalize agreements on the pricing and distribution of petrol. The meetings are scheduled for Tuesday and Wednesday, aiming to solidify terms for the lifting of petrol from the $20 billion refinery located in Lekki.
According to sources, the Petroleum Retail Outlet Owners Association of Nigeria has been asked to resubmit its request for petrol lifting from Dangote Refinery, emphasizing the importance of the upcoming talks. IPMAN views this agreement as a key step in improving the distribution of petroleum products, which is expected to strengthen the stability and efficiency of Nigeria’s fuel supply chain.
Last week, the Federal Government granted permission for petroleum marketers to lift petrol directly from Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). Wale Edun, the Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, stated, “Moving forward, petroleum product marketers are now able to purchase PMS (petrol) directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.”
Chinedu Ukadike, IPMAN’s National Publicity Secretary, highlighted that the association is eager to establish a productive business relationship with Dangote Refinery. In a recent interview on Arise TV, Ukadike noted that IPMAN has invested in tank farms to boost storage capacity, addressing previous operational challenges.
“We hope to sit down with Dangote maybe Tuesday or Wednesday, and if they give us a template or price, we will move to Dangote. I want to reassure you that we have all it takes to off-take whatever Dangote will give to us. I don’t know why they are dragging their legs to discuss with marketers, maybe it is politics,” Ukadike said.
He further added, “The more we take action in terms of distribution lines, the price will come down. We are not afraid of this competition; we have organized ourselves and are ready to compete because this is the survival of the fittest. The issue of not having tank farms is gone because we have addressed the issue, and now have farm tanks. Wherever Dangote says they will give us our products, we will distribute them to our marketers.”
The outcome of the discussions between Dangote Refinery and IPMAN is expected to shape the dynamics of petrol pricing and distribution in Nigeria, potentially bringing greater efficiency and competition to the market.
