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Through a recent agreement, the Independent Petroleum Marketers Association of Nigeria (IPMAN) will now have direct access to lift fuel products from Dangote Petroleum Refinery, an arrangement set to streamline distribution and potentially ease supply pressures.
According to the association, this new arrangement aims to make petroleum products more accessible to Nigerians at reduced prices, addressing both availability and affordability.During a press briefing in Abuja on Monday, IPMAN’s National President, Abubakar Garima, announced the agreement, which came after a significant meeting of the association’s National Working Committee.
He further explained that under this new deal, Dangote Refinery would facilitate IPMAN’s direct lifting of PMS, AGO, and DPK, which will be distributed to depots and retail outlets. This move, he assured, would lead to an uninterrupted supply of petroleum products across Nigeria, ensuring affordability for consumers.
He said, “Following our recent meeting with Alhaji Aliko Dangote and members of his top management staff in Lagos, we are happy to state the following; Dangote Refinery has obliged IPMAN to lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. That this new arrangement with the Dangote refinery will ensure a steady and ceaseless supply of PMS products all over Nigeria, at an affordable rate for Nigerians also.”
During a statement on October 29, Aliko Dangote, the driving force behind Dangote Industries Limited, disclosed that the refinery had more than 500 million liters of petrol in storage. Yet, he expressed frustration over the fact that oil marketers were not buying the refined fuel.
Read also: IPMAN Dumps Fuel Importation For Dangote’s Petrol Product
In a counter-response, IPMAN said its members had been unable to load petrol from the Dangote refinery for days. Garima said the association paid N40bn to the Nigerian National Petroleum Company Limited, but still cannot source the product – but the refinery said it has not received any payment from the IPMAN for refined petroleum products.
Speaking further at the briefing, Garima urged IPMAN members to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s Foreign Exchange market.
Regarding pricing, Garima expressed confidence that negotiations with Dangote would yield lower rates.
“All IPMAN members should fully support the Dangote refinery, as it’s the ideal thing to do considering the monumental benefits of backward integration and the medium to long-term impact it will have on the Foreign Exchange markets in Nigeria.
“IPMAN members nationwide should rely on the Dangote refinery and Nigerian rfineries for their white products, as this will translate into ensuring more job opportunities in Nigeria, as well as signify total support for President Bola Tinubu’s Renewed Hope Agenda,” he added.
Commenting, an Energy expert Kelvin Emmanuel, said the new agreement would eliminate financing and margin costs incurred by the NNPCL.
He said, “What is cheery about this news is that NNPC’s letter of credit as financing cost ($28 per metric tonne) that is passed to IPMAN — controlling 30,000 retail stations and their margin ($26.48 per metric tonne) will be removed.”
The IPMAN president also stated that the association is preparing for a smooth transition to nationwide CNG refill stations, as it is currently in negotiations with the presidential CNG initiative.
