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Marketers register with Dangote refinery ahead of loading

Ademola Damilola by Ademola Damilola
June 10, 2024
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As anticipation builds among Nigerians for the availability of premium motor spirit from the Dangote Petrochemical Refinery this month, petroleum marketers have begun the process of registration with the company in preparation for product distribution, according to sources familiar with the matter.

These marketers are registering as individual business entities seeking direct fuel supply from the oil refinery. Concurrently, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed its intention to continue discussions with the refinery management to secure bulk supply arrangements for its members who may face challenges in procuring large volumes of petrol directly.

Aliko Dangote, the President of the Dangote Group, revealed last month that the sale of Premium Motor Spirit (PMS) would commence in June, emphasizing the refinery’s aim to halt petrol imports into Nigeria. Speaking at the recent Africa CEO Forum Annual Summit in Kigali, Rwanda, Dangote exuded confidence in revolutionizing Africa’s energy landscape, asserting Nigeria’s potential to become self-sufficient in gasoline production.

The news of Dangote’s refinery venture has been received positively by marketers, particularly independent ones who have historically relied on third-party sources for petrol procurement at higher costs. Hammed Fashola, the National Vice President of IPMAN, expressed enthusiasm about the prospect of obtaining petroleum products directly from the Dangote refinery, foreseeing an end to fuel scarcity in Nigeria with the discontinuation of imports.

However, IPMAN, representing over 80 percent of filling stations in Nigeria, is yet to formalize an agreement with the refinery for PMS supply. Fashola emphasized the association’s desire for direct collaboration with Dangote, advocating for negotiated price reductions through bulk purchases. While plans for a meeting between IPMAN and Dangote remain pending, individual marketers have already initiated the registration process with the refinery.

Clement Isong, the Executive Secretary of the Major Energies Marketers Association of Nigeria, declined to confirm whether members of his association had commenced registration with Dangote, citing a lack of information on the matter. Speculation arises regarding the possibility of the refinery partnering with a major marketer for petrol distribution, reminiscent of its current arrangement with MRS for diesel sales.

As Nigerians eagerly await the introduction of Dangote petrol into the market, hopes are high for potential price reductions that could alleviate the financial burden on consumers, who heavily rely on petrol for transportation and power generation.

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