The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to engage in talks with Dangote Petroleum Refinery on Tuesday and Wednesday to finalize agreements on petrol pricing and supply. The discussions aim to settle the cost and process of lifting petrol directly from Dangote’s $20 billion refinery in Lekki.
The Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has also been asked by the refinery to resend its request for petrol lifting, signaling potential progress. PETROAN expressed optimism that competition in the downstream oil sector could drive down petrol prices in the near future, once marketers begin sourcing directly from the refinery.
IPMAN sees the upcoming agreement as a critical step toward ensuring a stable fuel supply chain. Last week, the Federal Government approved the direct purchase of petrol from local refineries, bypassing the Nigerian National Petroleum Company Limited (NNPC). Finance Minister Wale Edun noted that this move is intended to encourage competition and improve market efficiency.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, stated that the association is ready to collaborate with Dangote Refinery, having addressed previous challenges like storage capacity by acquiring tank farms. “We’re organized and ready to compete,” Ukadike said during an Arise TV interview, adding that the distribution network is in place to handle the supply from Dangote once the pricing template is provided.
Billy Gillis-Harry, President of PETROAN, also confirmed that Dangote is working to set up meetings with his group, and they are prepared to lift products from multiple sources, including NNPC, importers, and other refineries. He mentioned that there is a positive shift in communications with Dangote, and the process to start product lifting from the refinery could begin soon.
On the prospect of a petrol price drop, Gillis-Harry noted that a significant supply boost could drive prices down. He suggested that the price might stabilize at N700/liter depending on market conditions, emphasizing that increased supply would naturally reduce profit margins.
In a related development, IPMAN disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has issued bulk purchase licenses for independent marketers, enabling them to lift products directly from Dangote Refinery. Ukadike called for immediate implementation of the plan, stressing that competition is necessary for a fair and efficient market.
Additionally, the association is working with security agencies to prevent product theft and adulteration. They also seek government assistance in creating an energy bank to help marketers manage the high costs of interest rates, which are driving up fuel prices.
While there is still uncertainty over the exact pricing, a new petrol price is expected to be announced early this week, marking the start of direct competition between independent marketers and the NNPC.
