The Independent Petroleum Marketers Association of Nigeria has started lifting Premium Motor Spirit from the Dangote Petroleum Refinery.
This comes after an agreement between IPMAN and the refinery was reached last month.
IPMAN members have already lifted millions of litres of petrol from the Dangote refinery, which is situated in the Lekki Free Trade Zone in Lagos, according to The Punch.
The National Publicity Secretary of IPMAN, Chinedu Ukadike, confirmed in an interview that the lifting of petrol from the Dangote refinery began in late November.
According to Ukadike, independent marketers began the prior loading of petrol through MRS Oil, which has been ongoing while awaiting the completion of the terms of the agreement between IPMAN and the Dangote refinery.
This step was taken to ensure a smooth transition and steady supply of petrol from the refinery.
“There is a pre-arrangement we had. Our experts are putting things together for our documentation. Dangote refinery made some products available to us in MRS and we started the loading gradually (in November). We are buying Dangote products through MRS,” Ukadike said.
When asked if this was akin to purchasing through a middleman, Ukadike denied it, stating, “This is not the issue of a middleman. We have to start with something first to bridge that gap.”
Ukadike emphasized that independent marketers have begun purchasing PMS directly from the $20bn Dangote refinery.
He also pointed out that the refinery’s decision to reduce the price of PMS from N990 per litre to N970 had led to increased demand in the local market.
Furthermore, Ukadike noted that the agreement between IPMAN and Dangote contributed to the reduction in petroleum product prices by eliminating middlemen and profiteering.
“The most important thing is that IPMAN members have started buying directly from Dangote. We’ve been uploading products stored in the tank and meant for commuters.
“The reduction in the price of Dangote PMS has also increased demand. We are also anticipating that the price decrease will strengthen the economy.
“IPMAN’s direct purchase agreement with Dangote influenced the dwindling price of petrol because it has eradicated the issue of middlemen and profiteering of petroleum products. So the era of middlemen has gone. You can access Dangote as quickly as possible once you pay your money,” he stated.
After several days of grappling with the crude supply crisis, the Dangote refinery started selling petrol on September 15, 2024. Initially, the refinery sold exclusively to the Nigerian National Petroleum Company Limited (NNPC), which acted as an intermediary between the refinery and the marketers.
However, the supply chain fell short of expectations, prompting independent marketers to call for direct transactions with the $20bn refinery.
As a result, the Federal Government announced that the NNPC would no longer be the exclusive off-taker of Dangote fuel, allowing willing buyers to directly purchase from the refinery, which has a capacity of 650,000 barrels per day.
