Dangote Refinery Sells Petrol at N990/Litre to Marketers

Dangote Refinery Sets Petrol Price at N990/Litre

The partnership also addresses fuel scarcity and supply delays by ensuring consistent product...

Oil marketers load petrol at N990 per litre from Dangote Refinery, signaling potential reduction in fuel prices nationwide.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced purchasing Premium Motor Spirit (PMS), also known as petrol, directly from the Dangote Refinery. This strategic partnership enables IPMAN members to acquire fuel at competitive rates.

Under the agreement, IPMAN members can purchase petrol at N940 per liter for sea transportation and N990 per liter for truck deliveries. This arrangement is expected to bolster the Nigerian oil industry by reducing reliance on fuel imports.

The partnership benefits over 30,000 IPMAN members, granting them direct access to bulk fuel purchases from the refinery. This development is poised to enhance Nigeria's energy security, stimulate economic growth, and strengthen the country's petroleum sector.

IPMAN President, Abubakar Garima, announced that the association's direct access to Dangote Refinery's supply chain will lead to reduced pump prices at IPMAN retail outlets nationwide. By bypassing intermediaries like NNPCL and depot owners, IPMAN members can now purchase fuel at more competitive rates.

This new arrangement is expected to result in significant price reductions, potentially up to N50 per liter. For example, in Maiduguri, where current pump prices stand at N1,200 per liter, prices could drop to N1,150 or lower. Actual price reductions will vary depending on location.

The partnership also addresses fuel scarcity and supply delays by ensuring consistent product availability. With direct access to Dangote Refinery's supply chain, IPMAN members can maintain steady inventory levels, alleviating supply chain disruptions.

Key Benefits:

° Lower pump prices at IPMAN retail outlets

° Potential price reduction of up to N50 per liter

° Consistent product availability

° Reduced fuel scarcity and supply delays

° Enhanced operational efficiency for IPMAN members

This groundbreaking collaboration between IPMAN and Dangote Refinery promises to bring relief to Nigerian consumers, stimulate economic growth, and strengthen the country's petroleum sector.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) secured the groundbreaking agreement with Dangote Refinery, enabling direct purchases of petrol at competitive rates. This move eliminates the need for third-party approvals and allocations, which previously caused delays. With products sent directly to filling stations, the supply chain is now streamlined, paving the way for reduced prices and improved distribution.

Benefits of the Agreement:

Lower Prices: Direct purchases from Dangote Refinery will reduce costs, potentially leading to price drops of up to N50 per liter.

Increased Efficiency: Products will be readily available, eliminating delays and scarcity.

Improved Distribution: Independent marketers can now secure fuel supplies directly, ensuring consistent product availability.

According to IPMAN President, Abubakar Garima, this agreement is a long-term solution for reducing prices and improving product distribution. With steady supply and deregulation, the market may experience further price reductions as currency and crude oil prices stabilize.

The Road to Deregulation:

The IPMAN and Dangote agreement follows the Nigerian National Petroleum Company Limited's (NNPCL) decision to pause its exclusive rights as the sole off-taker for the 650,000 barrels per day refinery. This shift allows independent marketers to secure fuel supplies directly, promoting competition and efficiency in the market.

By cutting out intermediaries, IPMAN members can purchase petrol at N940 per liter for sea transportation and N990 per liter for truck deliveries. This new pricing structure is expected to benefit over 30,000 IPMAN members, ultimately leading to reduced pump prices at retail outlets nationwide.

IPMAN is making strides in securing a stable fuel supply for Nigeria. Chinedu Ukadike, IPMAN's National Publicity Secretary, confirmed that the necessary documentation for bulk purchasing from Dangote Refinery is underway. This off-taker arrangement will enable efficient bulk purchasing nationwide, benefiting IPMAN members.

Benefits of the Partnership:

Reduced Fuel Imports: If Dangote's refinery meets local demands, fuel imports will significantly decrease, says IPMAN's Vice President, Hammed Fashola.

Local Production: IPMAN advocates for local production and sees Dangote Refinery as a sustainable partner in addressing Nigeria's fuel supply issues.

Streamlined Logistics: IPMAN and Dangote are finalizing logistical arrangements to ease the process for IPMAN members.

Additionally, IPMAN President, Abubakar Garima, announced that NNPCL is addressing its outstanding debts to marketers, with significant progress made toward reducing the N4 billion owed. This development, coupled with the Dangote Refinery partnership, promises to bring relief to Nigerian consumers and stimulate economic growth.

Next Steps:

° Finalization of logistical arrangements

° Commencement of product lifting (start date pending)

° Continued debt resolution between NNPCL and marketers