IPMAN disclosed that the pricing for petrol from the $20 billion facility located in Lekki is set at N940 per litre for vessel transport and N990 per litre for truck transport.
Additionally, sources indicate that independent oil marketers may cease petrol imports due to this new arrangement for direct procurement from the Dangote refinery.
During an interview on Channels Television on Tuesday, IPMAN President Abubakar Garima stated that the retail prices of petrol at their outlets are expected to decrease as a result of this agreement with the Dangote refinery.
On Monday, IPMAN finalized an agreement with the Dangote refinery to directly acquire petrol, diesel, and other petroleum products.
This development comes after the Nigerian National Petroleum Corporation abandoned its plan to act as the exclusive off-taker for products from the refinery, which has a capacity of 650,000 barrels per day.
The IPMAN president noted that the Dangote refinery is committed to allowing marketers to directly lift Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) for distribution to their depots and retail locations, although he did not disclose specific pricing details.
In the interview, an IPMAN national officer provided an update on pricing, indicating that the refinery offers two distinct rates for marketers based on their transportation choices: N990 per litre at the gantry or N940 per litre via vessel.
Garima said, “Presently, we have been given two different arrangments on how to buy fuel from the refinery. There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre.
“The difference is because we have to load it and carry it to another part of the state. We use vessels to carry these products and there is another one to load from the gantry.
“For Port Harcourt, Warri, Calabar, we have to use vessels because there is no Dangote loading gantry there, we have to carry it to our private depot and discharge and distribute it to our members.”
Investigations conducted by our correspondent indicated that the new price is lower than the N960 and N990 per litre announced by the refinery for ships and trucks last week.
Garima emphasized that the partnership is designed to guarantee a steady and affordable supply of Premium Motor Spirit and other products across the country. He also anticipated that the petrol price could decrease by N50 or more, depending on the purchasing location.
Garima clarified that buying directly from the refinery, which has a capacity of 650,000 barrels per day, will remove the need for payments to intermediaries, including the Nigerian National Petroleum Company and depot owners. He stated that this cost reduction will be reflected in petrol prices in the upcoming weeks.
“We have the overall market in the country. We go everywhere in the country. The implication goes beyond the issue of price, but still, price is the main target.
“The masses are looking for how we, Independent Petroleum Marketers, can reduce price for them. So the price too will reduce because we are not buying through the third party.
“So the profit that we have been giving to the third party like NNPC and depot owners will be reduced. That is the issue.
“For instance, the current price in Maiduguri now is N1,200 per litre. So with these current changes, it may likely reduce to N1,150, which there is a reduction of N50. So that’s N1,150. It may even be below that.
“And as we continue, you know, this thing, since it’s deregulation. Yes. As we continue. It can go down. It can go down continuously because, provided that the product is available, you may find that the market will come a little bit low, and then the naira will start appreciating. And then if the crude oil price is reduced, automatically, the same thing will be reduced.
Garima further emphasized that this strategic partnership will effectively address the issue of fuel scarcity, ensuring enhanced product availability and accessibility.
“Again, the availability is also there. If a marketer pays for a product before, these retailers hold our money before supplying us with fuel. That’s the reason why you may find sometimes these filling stations don’t have fuel.
“But now, since we are getting the product directly from the Dangote refinery, the issue of delay is eliminated. Immediately, we get the product, we discharge to our filling stations,” he added.
In addition, Garima disclosed that the NNPC has commenced the settlement of its outstanding N4 billion debt owed to marketers.
“The NNPC has been paying our money back. We have been loading. Our money with them is reducing drastically. That one is not a problem for us now.
“The only thing still is that there are some remaining balances that they have not been able to pay our marketers to load the products. I spoke with the MD retail of NNPC and he told me that our balance will soon be sorted out,” Garima said.
On how much Nigerians will purchase, he said, “With this recent development, definitely anywhere you go, you will find that at the end of the day, we have the lowest price.”
Confirming this, the IPMAN National Publicity Secretary, Chinedu Ukadike, has stated that the association has initiated the completion of the requisite documentation to commence the lifting of products.
In an exclusive interview, Ukadike further confirmed that the product would be procured in bulk on behalf of its members.
He said, “For now, we are going to be doing it comprehensively, in an off-taker manner. All independent marketers will be buying from Dangote as directed by our president.
“We are still putting together our papers on when to start loading as quickly as possible, but the gig now is that we have been granted permission to load.”Meanwhile, the IPMAN Vice President, Hammed Fashola, told one of our correspondents that if petrol is available locally, there is no need for importation any more.
Fashola highlighted that IPMAN had consistently expressed its support for the Dangote refinery from the outset. He emphasized that the newly established agreement represents a mutually beneficial arrangement for all parties involved..
“We have set it from the onset that we are ready to work with Dangote. We need to encourage him. We are very conscious of that. Based on this, we believe it is going to be a win-win situation for both Dangote and IPMAN. I am sure the price will be reasonable. We are just after the price. Once the price is okay for us, we are good to go,“ he stated.
In response to inquiries regarding the potential discontinuation of IPMAN’s pursuit of a petrol import license, Mr. Fashola provided clarification. He emphasized that as long as the current supply meets the demand, there is no immediate need for additional imports.
However, he acknowledged that the commencement of fuel lifting is still pending due to ongoing logistical arrangements between the relevant parties.
“No day has been fixed yet for the lifting. We still have to put in some logistics. It is not something you will just take your truck and go to Dangote. We still have to do some things—payment modalities and all that. We have to carry our members along too. We have to sensitise them about how the transaction will go. So, it is still ongoing, very soon we will start lifting. I don’t want to give a particular date,” he disclosed.
The management team of the Dangote refinery is scheduled to engage with representatives from the Petroleum Products Retail Outlet Owners Association of Nigeria to explore potential arrangements for petrol distribution, similar to the approach taken by IPMAN.
Joseph Obele, the Publicity Secretary of PETROAN, indicated that the refinery has already reached out via email to the association's President, Billy Harry, to request a business meeting.
Obele further noted that Harry has assembled a seven-member team, with himself as the leader, to represent PETROAN during this discussion.
“The Head of Commercial at the Dangote refinery has sent a mail to the National President of PETROAN, Dr Billy Hary, to anticipate a possible strategic business meeting in the coming days.
“The National President has set up a team of seven persons headed by himself who will represent PETROAN at that strategic business meeting.
“At the proposed meeting, we have to emphasise that PETROAN’s primary objective is to provide affordable, high-quality products to consumers, and to do so in compliance with all regulatory standards and industry best practices,“ he stressed.
The Dangote refinery has secured an agreement to export more than 200,000 metric tonnes of petrol to international markets. A report from S&P Global Commodity Insights, referencing an insider, indicates that the refinery has completed its initial export orders for gasoline and intends to begin shipments as soon as the vessels are available.
In early November, the refinery sought to sell gasoline internationally by issuing a public tender for the fuel. However, this offer was later withdrawn, likely due to public criticism. Three traders from West Africa noted that the refinery had initially proposed a tender for 40,000 metric tonnes of gasoline, detailing two products with a sulfur content of 150 parts per million.
One insider characterized the initial tender as a "mistake," while another labeled the situation as "controversial," particularly given that Dangote currently fulfills less than one-third of Nigeria's domestic gasoline requirements. A refinery official confirmed the cancellation of the 40,000 metric tonne tenders but stated on November 11 that the company has enough surplus to initiate exports, asserting, "We have the stocks."