The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to engage in discussions with the Dangote Petroleum Refinery from Tuesday to Wednesday to finalise agreements on the pricing and lifting of petrol from the refinery.
According to information gathered on Sunday, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has also been requested by the $20 billion Lekki-based refinery to resubmit its request for lifting petrol.
PETROAN expressed optimism that petrol prices could drop in the coming days as competition intensifies in the downstream oil sector with marketers loading products directly from the refinery.
IPMAN, in a statement, described the upcoming agreement with Dangote as a critical step toward improving Nigeria’s fuel supply chain, promoting stability, and enhancing market efficiency.
Last week, the Federal Government granted marketers the approval to lift petrol directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC).
The Minister of Finance and Chairman of the Naira-crude sale implementation committee, Wale Edun, highlighted the importance of this development, stating, “Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.”
IPMAN’s National Publicity Secretary, Chinedu Ukadike, provided an update during an interview, revealing that the association aims to establish a strong business relationship with Dangote’s refinery. “We hope to sit down with Dangote maybe on Tuesday or Wednesday, and if they give us a template or price, we will move forward
. We are well-prepared to distribute any volume of petrol they provide,” Ukadike said. He emphasised that the association had acquired tank farms to boost its storage capacity and address prior operational challenges.
Similarly, PETROAN President Billy Gillis-Harry shared that his group has been in touch with the Dangote refinery, resubmitting requests for petrol lifting. H
e expressed optimism about finalising agreements and starting product lifting soon, noting, “We are eager to take products from all sources – NNPC, traders, importers, Dangote refinery, and others.”
Gillis-Harry also mentioned that once the competition among marketers and suppliers intensifies, petrol prices could decrease, potentially dropping to as low as N700 per litre, depending on market conditions.
Ukadike further disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had issued a bulk purchase licence to independent marketers, enabling them to offtake products from the Dangote refinery
. He noted that the regulatory authority had also promised an import licence for marketers to ensure fair competition.
Addressing other concerns, Ukadike revealed that the NNPC had agreed to resolve outstanding debts owed to oil marketers and unlock funds tied up in the system. He added that new petrol prices would be announced early in the week, which would allow marketers to plan their operations more effectively.
In a final note, IPMAN called on the government to create an energy bank to provide financial assistance to marketers, particularly in light of the high interest rates currently affecting fuel prices
. Additionally, IPMAN emphasised its collaboration with security agencies to prevent fuel smuggling and ensure the integrity of products sold in the market.
