The Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced the direct lifting of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery in the Lekki Free Trade Zone, Lagos. This follows an agreement reached between the association and the refinery in November 2024.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that the loading of petrol began in late November. Independent marketers initially started the loading process through MRS Oil, with arrangements made for the documentation and logistics required to facilitate direct purchases from Dangote Refinery.
Ukadike clarified that while the initial process involved MRS Oil, the move was a necessary step to bridge the gap before direct transactions began. “We are now buying Dangote products directly. It is not about using a middleman; it’s part of the arrangement to ensure smooth operations,” he said.
The deal between IPMAN and Dangote has already resulted in a reduction of the retail price of PMS from N990 to N970 per litre, leading to increased demand for the product. Ukadike emphasized that the direct supply from Dangote had removed the involvement of middlemen, eliminating profiteering and fostering price stability.
The agreement with Dangote Refinery is seen as a significant shift in Nigeria’s fuel distribution landscape. The Federal Government had earlier allowed marketers to purchase fuel directly from local refineries, without relying on the Nigerian National Petroleum Company Limited (NNPC) as an intermediary. This move is aimed at boosting market efficiency and promoting competition.
In September 2024, Dangote Refinery began selling petrol exclusively to NNPC, which acted as the intermediary. However, due to inefficiencies in the supply chain, independent marketers pushed for direct access to the refinery. In response, the government announced that NNPC would no longer be the sole off-taker, allowing marketers to negotiate directly with refineries.
IPMAN’s agreement with Dangote Refinery extends beyond PMS to include the supply of other petroleum products, such as Automotive Gas Oil (AGO) and Dual Purpose Kerosene (DPK), for distribution to depots and retail outlets nationwide.
IPMAN also expressed opposition to purchasing petrol from the newly refurbished Port Harcourt Refinery, should its price exceed N1,030 per litre, urging NNPC to review its pricing structure.
Meanwhile, the National Bureau of Statistics (NBS) reported that Nigeria imported PMS worth N3.32 trillion in the third quarter of 2024, while also exporting crude oil valued at N13.4 trillion and liquefied natural gas worth N2.1 trillion during the same period.
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