Dangote Signs Direct Supply Agreement with Petrol Marketers

Dangote Partners Petrol Marketers for Direct Supply

“IPMAN members should rely on Dangote Refinery and Nigerian refineries for products, creating more...”

Dangote Refinery partners with Independent Petroleum Marketers Association of Nigeria (IPMAN) for direct petrol supply, ensuring regular and affordable fuel distribution across Nigeria. The agreement follows previous negotiations with NNPC, where Dangote Refinery will supply petrol at N766 per litre. This move aims to address petrol shortages and promote economic growth in the country.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached a landmark agreement with Dangote Refinery to lift petroleum products directly, eliminating the need for middlemen and ensuring a steady supply of products nationwide. This deal comes after weeks of intense negotiations between both parties, focusing on the supply and affordability of petroleum products.

Benefits of the Agreement

Direct Supply: IPMAN members will now lift products directly from Dangote Refinery, reducing costs and increasing efficiency.

Affordability: The partnership is expected to result in lower prices for petroleum products across the country.

Economic Growth: This move will contribute to Nigeria's economic growth by supporting the petroleum industry.

Increased Job Opportunities: The agreement will create more job opportunities for Nigerians.

IPMAN President, Abubakar Garima, expressed optimism about the partnership, urging members to support Dangote Refinery and take advantage of the benefits it offers. With this agreement, Dangote Refinery has pledged to commence supply of products to over 30,000 IPMAN members and 150,000 retail outlets nationwide.

“After meeting with Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets,” he said.

Abubakar Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has urged members to support Dangote Refinery, citing its potential to boost Nigeria's economy through backward integration benefits and positive impacts on the foreign exchange market. This call to action comes after IPMAN and Dangote Refinery reached an agreement for direct supply of petroleum products, eliminating middlemen and reducing costs.

Garima emphasized that relying on Dangote Refinery and Nigerian Refineries for white products will create more job opportunities and support President Bola Tinubu's renewed hope agenda. He also expressed confidence that negotiations with Dangote would yield lower rates, making petroleum products more affordable for Nigerians.

Benefits of Supporting Dangote Refinery:

Boost to Nigeria's Economy: Through backward integration benefits and positive impacts on the foreign exchange market 

Increased Job Opportunities: By relying on Dangote Refinery and Nigerian Refineries for white products 

Reduced Costs: Elimination of middlemen and reduced costs 

Lower Rates: Negotiations with Dangote expected to yield lower rate.

“IPMAN members should rely on Dangote Refinery and Nigerian refineries for products, creating more job opportunities and supporting President Bola Tinubu's renewed hope agenda,” he stated.

Prior to the recent agreement, Independent Petroleum Marketers Association of Nigeria (IPMAN) had expressed concerns in November about the high logistical costs associated with purchasing petrol from Dangote Refinery. This led independent marketers to explore alternative, more affordable options at other depots nationwide.

The disagreement resulted in significant delays and challenges in the supply of petroleum products, disrupting the fuel distribution chain. However, with the new agreement in place, IPMAN and Dangote Refinery have resolved their differences, paving the way for a more efficient and cost-effective supply chain.

Background Context:

Previous Concerns: High logistical costs at Dangote Refinery

Impact: Delays and challenges in petroleum product supply

Resolution: New agreement enables direct supply, reducing costs and increasing efficiency