Dangote Petroleum Refinery and IPMAN Sign Pact to Supply 60 Million Liters of Petrol Weekly
Naijawebinfo has learned that the Dangote Petroleum Refinery has entered into an agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million liters of Premium Motor Spirit (PMS), commonly known as petrol, on a weekly basis.
This arrangement translates to a total supply of 240 million liters per month, marking a significant boost to the country’s fuel supply chain.
According to IPMAN, the refinery’s offer is contingent upon the association’s demand and patronage, ensuring that supply meets demand and reduces potential waste.
The $20 billion refinery, located in Lekki, is also actively seeking to raise substantial funds to facilitate crude oil imports and expand its production capacity.
Fuel prices have begun to decline in recent weeks, attributed to increased competition in the market following the deregulation of the sector.
This is evident in the fact that the Nigerian National Petroleum Company Limited (NNPCL) and other marketers imported over two billion liters of PMS within a span of 42 days.
Speaking with The PUNCH, IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that members of the association can now lift substantial quantities of PMS directly from the Dangote Refinery, bypassing intermediaries.
IPMAN has historically been responsible for distributing most of the imported fuel in Nigeria, and this new arrangement is expected to enhance the association’s role in the downstream sector.
“We will off-take the product in millions of liters. Our members can lift a minimum of 10 million liters, with the refinery offering up to 60 million liters weekly based on demand,” Ukadike said.
“The 60 million liters is to be given weekly, and we can take and distribute it across the country once we start lifting the product from the refinery,” Ukadike added.
The association is expected to begin fuel distribution under this arrangement before the end of November, with documentation currently being finalized.
IPMAN has also developed a Special Purpose Vehicle (SPV) to streamline product off-take and ensure efficient nationwide distribution, eliminating the previous practice of individual marketers purchasing limited quantities and facing challenges.
This move is expected to enhance fuel availability and distribution efficiency across Nigeria, solidifying IPMAN’s role in the downstream sector.
