The Nigerian National Petroleum Company Limited (NNPCL) has granted permission to major petroleum marketers to begin the distribution of premium motor spirit (PMS), commonly referred to as petrol, sourced from the Dangote Petroleum Refinery, in accordance with the existing agreement between NNPCL and the refinery.

The original agreement designates NNPCL as the exclusive distributor of the refinery's petrol, with the first shipment amounting to 16.8 million liters being handled by NNPCL's retail division.

Reports from Vanguard reveal that several major marketers, including 11 Plc, have already begun to distribute the product to their locations in Lagos and other regions across the country.

One marketer, who requested anonymity, stated, "I can confirm that some major marketers are currently lifting from the Dangote Refinery, but this is still part of the NNPC's arrangement with the refinery; in essence, we are distributing NNPC products sourced from the Dangote refinery. It is not our product, and we do not have a direct agreement with the refinery."

However, it has been noted that independent marketers have not been included in this revised arrangement.

In a phone interview with Vanguard, Alhaji Abubakar Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that only NNPCL has access to the fuel from Dangote and that they supply the majority of the products to their retail outlets.

He further mentioned that they have not yet begun purchasing from NNPCL under the Dangote Refinery agreement.

He stated: “Independent marketers are waiting for NNPCL to give the new price of the petroleum products in order to lift from them. We load at the old rate of N875 per litre as most of our members have outstanding stock with NNPCL; we were told that they will be cleared this week.”

Following the agreement that designated NNPCL as the exclusive purchaser of petrol from Dangote Refinery, marketers have indicated that they may need to turn to importation to sustain their operations. Consequently, they have urged the Federal Government to fully liberalize the sector for all participants.

In the meantime, observations in Abuja and Lagos revealed that four days after NNPC commenced petrol loading from Dangote Refinery, numerous filling stations remained without supply and were closed.

In an interview with Vanguard, Chief Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that the association intends to start importing their own petrol.

“There has been no progress in the situation. We have been waiting for NNPC and nothing has changed. We have information that at least three marketers are bringing in products from outside of the country. This is Dangote’s chance to work with independent marketers.

“We are asking Dangote to sell to us at the same price as NNPC. We don’t understand why he has to depend solely on NNPC to distribute its product when he has other willing buyers.

“We are also looking at importing to keep our business. We are also asking the Federal Government to also hand over the Port Harcourt Refinery to independent marketers. We will engage capable people to manage it. That is the only panacea to this problem”, he added.

In discussing the new product lifting arrangement with key marketers, Dr. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, stated, "Typically, this would be seen as a positive development; however, we require additional information. It is essential to understand the framework governing the lifting process, the pricing structure, and other pertinent details, including the role of NNPC."