Dangote strikes agreement with marketers for direct lifting of petrol, diesel

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has struck an agreement with indigenous petrochemical refinery company, Dangote Refinery, for direct lifting of products.

IPMAN National President, Abubakar Garima, disclosed the development after a meeting of the National Working Committee of the association in Abuja on Monday, November 11, 2024.

Garima expressed optimism that the partnership will ensure not only a steady but also affordable supply of petroleum products nationwide.

He said after meeting with Aliko Dangote and his management team in Lagos, “We’re 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.”

The IPMAN President urged members of the association to support Dangote Refinery, citing backward integration benefits and positive impacts on Nigeria’s foreign exchange market.

Garima expressed confidence that the negotiations with Dangote would lead to lower rates, effectively bringing down retail prices.

On Compressed Natural Gas (CNG), he said IPMAN is currently negotiating with the presidential CNG Initiative as part of its preparation for a seamless transition to CNG refill stations nationwide.

He stressed that the partnership is expected to increase efficiency, affordability, and economic growth for Nigeria’s petroleum industry.

For its part, the Dangote Refinery pledged to commence the supply of products to over 30,000 IPMAN members and 150,000 retail outlets nationwide.

The development is expected to put paid to the middlemen arrangement, reduce costs, and eliminate protracted product scarcity by ensuring a steady supply.

IPMAN, Dangote butt heads over lifting of petrol

Recall that IPMAN had earlier expressed frustration over the difficulty its members were facing in lifting products from the Dangote Refinery.

The association lamented that its members couldn’t load petrol from the Dangote Refinery gantry in Lagos despite having paid ₦40bn to the Nigerian National Petroleum Company Limited (NNPCL).

However, the indigenous refiner debunked the claim, stating that it has not received any payments from IPMAN to purchase refined petroleum products.

It said while there were ongoing discussions with IPMAN, “it is misleading to suggest that they (IPMAN Members) are experiencing difficulties loading refined products from our Petroleum Refinery, as we currently have no direct business dealings with them.”

Additionally, the company said it can’t be held responsible for any payments made to other entities as the said payment has been made through the NNPCL, and not Dangote Refinery.

At the same time, the company said NNPCL has neither approved nor authorised the company to release petrol to IPMAN members.

While stressing that it can meet Nigeria’s demand for all petroleum products, Dangote Refinery advised the association to register directly with the company and make payments for petroleum products.