The Dangote Petroleum Refinery has committed to supplying 60 million litres of Premium Motor Spirit (PMS), commonly known as petrol, to the Independent Petroleum Marketers Association of Nigeria (IPMAN) on a weekly basis. This equates to 240 million litres monthly, depending on demand.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, explained that this new agreement will enable the association’s members to source petrol directly from the Dangote refinery, bypassing the need for middlemen. This direct supply arrangement is a significant step in Dangote’s wider strategy to enhance fuel distribution across Nigeria as the refinery ramps up operations.
Ukadike also highlighted that IPMAN has established a Special Purpose Vehicle (SPV) to handle the off take of products, ensuring that the association will be a key distributor. He emphasized that this new structure eliminates the need for individual marketers to purchase smaller quantities of fuel and guarantees financial stability for IPMAN’s members.
Ukadike confirmed that the official timeline for the start of product lifting will be announced once final discussions between IPMAN and Dangote Refinery are completed. He expressed confidence that the direct supply of petroleum products will begin before the end of November.
“We are finalizing discussions. You know the meeting between IPMAN, and the Dangote refinery was held last week, and documentation is in process. So, we are still doing a few pieces of documentation. Once they are sorted, we will off-take PMS from the plant, as we are still doing a few pieces of documentation on it.
Ukadike further emphasized that Dangote Group has given its assurance that product lifting could begin immediately, should IPMAN choose to start sooner. The process is expected to be finalized in the coming days.
The deal marks a new phase in the relationship between Dangote Refinery and Nigeria’s independent marketers, many of whom play a crucial role in the country’s petrol distribution network. As the largest refining operation in Nigeria, Dangote’s refinery is expected to significantly reduce the nation’s reliance on imported fuel, which has long been a financial burden.
This agreement comes at a time of growing competition in Nigeria’s fuel market, particularly following the deregulation of the sector. In recent weeks, petrol prices have been trending downward, partly due to increased competition from new imports by the Nigerian National Petroleum Company (NNPC) and other independent marketers. With Dangote’s refinery now preparing to supply petrol directly to IPMAN, the Nigerian fuel sector is set for transformative changes. This new arrangement is expected to stabilize fuel supply and potentially lower costs for consumers, as increased competition continues to shape the market following deregulation.
