The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with Dangote Refinery to directly lift petroleum products, including premium motor spirit (PMS), diesel, and dual-purpose kerosene (DPK).
This partnership aims to ensure a steady and affordable supply of petroleum products across Nigeria.
IPMAN National President, Abubakar Garima, announced the deal after meeting with Dangote Refinery’s management team in Lagos. The agreement is expected to eliminate middlemen, reduce costs, and ensure a consistent supply of petroleum products to IPMAN’s 30,000 members and 150,000 retail outlets nationwide.
Garima emphasized the importance of supporting local refining and urged IPMAN members to rely on Dangote Refinery and Nigerian refineries for white products. He expressed optimism that negotiations with Dangote would result in more competitive rates for petroleum products.
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The agreement follows months of discussions between IPMAN and Dangote Refinery, which has already commenced production of diesel and aviation fuel. With a production capacity of 650,000 barrels per day, Dangote Refinery is poised to transform Nigeria’s petroleum landscape.
Energy expert Kelvin Emmanuel noted that the deal would eliminate financing and margin costs incurred by the Nigerian National Petroleum Company Limited (NNPCL). “The removal of NNPCL’s letter of credit as financing cost ($28 per metric tonne) and IPMAN’s margin ($26.48 per metric tonne) will significantly reduce costs,” Emmanuel said.
IPMAN is also exploring a transition to Compressed Natural Gas (CNG) refill stations nationwide, in partnership with the presidential CNG initiative. The association has called for a partnership with the Federal Government to ensure the success of the CNG initiative.
The partnership between Dangote Refinery and IPMAN is expected to increase efficiency, affordability, and economic growth in Nigeria’s petroleum industry. With the potential to reduce petrol prices, this deal is a welcome development for Nigerians.
