The Independent Petroleum Marketers Association of Nigeria has commenced the lifting of Premium Motor Spirit from the Dangote Petroleum Refinery.
According to The PUNCH, this follows an agreement finalized last month between IPMAN and the refinery.
Sources revealed that members of IPMAN have already begun transporting millions of litres of petrol from the Dangote refinery, situated in the Lekki Free Trade Zone, Lagos.
The National Publicity Secretary of IPMAN,Chinedu Ukadike, confirmed that the loading of petrol began in late November.
He explained that independent marketers started taking deliveries through MRS Oil while the agreement’s terms were being finalized.
“There is a pre-arrangement we had. Our experts are putting things together for our documentation. Dangote refinery made some products available to us in MRS, and we started the loading gradually (in November). We are buying Dangote products through MRS,” Ukadike stated.
When asked if this arrangement involved a middleman, Ukadike denied the claim, asserting, “This is not the issue of a middleman. We have to start with something first to bridge that gap.”
He emphasized that independent marketers are now directly purchasing PMS from the $20 billion Dangote refinery. Ukadike also pointed out that the decision by Dangote refinery to reduce the price of PMS from N990 to N970 per litre had led to increased demand in the domestic market.
“The most important thing is that IPMAN members have started buying directly from Dangote. We’ve been uploading products stored in the tank and meant for commuters,” he said. Ukadike noted that this new arrangement has contributed to a decrease in the price of petrol, removing middlemen and curbing profiteering. “The reduction in the price of Dangote PMS has also increased demand. We are also anticipating that the price decrease will strengthen the economy. IPMAN’s direct purchase agreement with Dangote influenced the dwindling price of petrol because it has eradicated the issue of middlemen and profiteering of petroleum products,” he added.
The Dangote refinery had begun selling petrol on September 15, 2024, initially only to the Nigerian National Petroleum Company Limited which acted as an intermediary.
However, the supply chain did not function as effectively as planned, prompting independent marketers to demand direct purchases from the $20 billion refinery.
The Nigerian Federal Government responded by stating that the NNPC should no longer be the exclusive off-taker of Dangote fuel, allowing other buyers to purchase directly from the 650,000 barrels-per-day refinery.
“Moving forward, petroleum product marketers are now able to purchase PMS 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,” said Wale Edun, Minister of Finance and Chairman of the naira-for-crude committee.
Just a month after the government’s announcement, IPMAN National President, Abubakar Maigandi, revealed that the association had signed a deal with Dangote to purchase PMS, AGO, and DPK directly from the refinery for distribution to their depots and retail outlets.
In related news, IPMAN has voiced its objections to purchasing PMS from the newly refurbished Port Harcourt refinery if the price is set at N1,030 per litre.
Ukadike stated, “If the Port Harcourt refinery’s PMS price is truly N1,030, it is unacceptable to us independent marketers. We will not buy from them. We will buy where it is cheap.” However, he expressed hope that the NNPC would review the price.
The National Bureau of Statistics reported that in the third quarter of 2024, Nigeria imported PMS worth N3.32 trillion, alongside N1.33 trillion worth of diesel.
During the same period, Nigeria exported crude oil valued at N13.40 trillion and liquefied natural gas exceeding N2.10 trillion. The report noted that crude oil accounted for 65.44% of total exports, with non-crude oil exports contributing 34.56%, including N2.5 trillion from non-oil products.
