The Independent Petroleum Marketers Association of Nigeria is set to engage in discussions with Dangote Petroleum Refinery between Tuesday and Wednesday to finalize agreements regarding the cost and lifting of petrol from the facility.
Reports indicate that the Petroleum Retail Outlet Owners Association of Nigeria has been asked by the $20 billion Lekki-based refinery to resend its request for petrol lifting, according to The Punch.
This came as PETROAN has expressed optimism that petrol prices may decrease in the coming days as competition in the downstream oil sector intensifies, enabling marketers to source the product directly from the refinery.
Meanwhile, IPMAN has described the upcoming agreement with Dangote Refinery as a pivotal move in its efforts to streamline the lifting of petroleum products. This initiative aims to enhance the stability and efficiency of Nigeria’s fuel supply chain, ensuring a more reliable distribution of fuel across the country.
Last week, the Federal Government authorized petroleum marketers to lift petrol directly from Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited.
The Minister of Finance and Chairman of the Naira-Crude Sale Implementation Committee, Wale Edun, stated that this new arrangement allows marketers to purchase Premium Motor Spirit directly from local refineries, eliminating the need for NNPC as an intermediary.
He said, “Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.”
Providing update on Sunday, the National Publicity Secretary of IPMAN, Chinedu Ukadike, expressed optimism about upcoming discussions with officials from Dangote Refinery, highlighting the association’s readiness to establish a productive business relationship.
During an interview on Arise TV, Ukadike noted that IPMAN has acquired tank farms to improve its storage capabilities, effectively addressing challenges that had previously impeded operations.
This development positions the association for enhanced efficiency in its fuel distribution efforts.
He said, “We hope to sit down with Dangote maybe Tuesday or Wednesday and if they give us a template or price, we will move to Dangote. I want to reassure you that we have all it takes to off-take whatever Dangote will give to us. I don’t know why they are dragging their legs to discuss with marketers, maybe it is politics.
“The more we take action in terms of distribution lines, the price will come down, we are not afraid of this competition, we have organised ourselves and are ready to compete because this is the survival of the fittest.
“The issue of not having tank farms is gone because we have addressed the issue and now have farm tanks and anywhere Dangote says they will give us our products, we will distribute them to our marketers.”
On his part, President PETROAN, Billy Gillis-Harry, said his group had been asked to resend their request to lift petrol from the plant.
“We have written to them (Dangote) several times and they are fully aware of what PETROAN has been doing. One of the executive directors there called me to say that they are going to set up a meeting with us, so we are waiting for that to happen. Hopefully, we can do that this week.
“We are willing to take products from all of them, NNPC, traders, importers, Dangote refinery, modular refineries, etc. So, we are in that pursuit. We have not received confirmation of the meeting with Dangote yet, but we have been told to resend our request, which we have done.
“And I think that is a positive response compared to before when they were just keeping quiet. So, any moment from now PETROAN members should start lifting products from the Dangote refinery and it is good news for us and everyone,” Gillis-Harry stated.
When asked about the potential for future petrol price reductions, the president of PETROAN stated “The price can be knocked down to N700/litre; it depends on the volatility of the market and this does not always mean upward prices, it could also mean prices coming down.
“If we have massive supply and there is a lot of products in Nigeria, obviously everybody will be looking for just minimal profit. Our business is focused on turnover, so people may cut prices down.”
