The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to engage in discussions with Dangote Petroleum Refinery between Tuesday and Wednesday to finalize agreements on the pricing and lifting of petrol from the facility.
Sources revealed on Sunday that the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has been asked by the $20 billion Lekki-based refinery to resubmit its request for petrol lifting. PETROAN expressed optimism that petrol prices might decrease in the coming days as competition in the downstream oil sector increases with marketers sourcing fuel from the refinery.
IPMAN considers the upcoming agreement with Dangote Refinery a vital step in enhancing the lifting of petroleum products and improving the stability and efficiency of Nigeria’s fuel supply chain.
Last week, the Federal Government granted petroleum marketers permission to lift petrol directly from the 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 that this change would promote competition and improve market efficiency.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, shared that the association hopes to meet with Dangote officials to establish a productive business relationship. He noted that IPMAN has invested in tank farms to bolster storage capacity, addressing previous operational challenges.
“We expect to meet with Dangote on Tuesday or Wednesday, and if we receive a pricing template, we’ll proceed. We are fully prepared to off-take whatever Dangote provides,” Ukadike said during an interview on Arise TV. He emphasized that IPMAN is ready to compete, as the organization has resolved previous storage issues.
Billy Gillis-Harry, President of PETROAN, confirmed that the association was instructed to resend its request to lift petrol from the refinery. He mentioned ongoing communication with Dangote’s executive team about setting up a meeting, which is anticipated this week.
Gillis-Harry stated, “We are ready to source products from all suppliers, including NNPC and Dangote refinery. We haven’t yet confirmed a meeting with Dangote, but being asked to resend our request indicates progress.”
Regarding potential petrol price reductions, he suggested prices could drop to around N700 per litre, contingent on market conditions and supply levels.
Ukadike added that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted a bulk purchase license to independent marketers, enabling them to lift products from Dangote refinery immediately. He highlighted that the NMDPRA is also expected to issue import licenses to further support independent marketers.
In light of debts owed by NNPC to oil dealers, Ukadike noted that NNPC has agreed to process outstanding tickets, which will help alleviate financial pressures that contribute to higher fuel prices.
IPMAN is also seeking government support in establishing an energy bank to help marketers manage rising interest costs. They are collaborating with security agencies to prevent fuel theft and ensure that products intended for independent marketers reach their destinations without adulteration. Ukadike underscored that independent marketers face significant challenges due to high operational costs and investment burdens.
