Real reason we are yet to buy from Dangote Refinery — IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) is in ongoing negotiations with the Dangote Refinery regarding terms for lifting petrol supplies.

This development follows recent claims by Dangote Refinery’s President, Alhaji Aliko Dangote, that the Nigerian National Petroleum Company Limited (NNPCL) and other petroleum marketers are opting to import petrol from overseas refineries rather than sourcing from his facility.

Dangote stated that his refinery has 500 million litres of petrol in storage, an amount he contends is adequate for Nigeria’s domestic consumption. The refinery’s ability to meet local demand could theoretically ease supply issues and reduce import reliance, but complexities in contract terms have delayed direct sourcing arrangements with independent marketers.

According to IPMAN’s Public Relations Officer, Chief Chinedu Ukadike, the association is in talks with Dangote Refinery to finalize terms for accessing the locally refined fuel. However, he clarified that these discussions have yet to yield a concrete agreement, meaning that independent marketers have not yet begun to source petrol directly from Dangote’s facility.

The stalled negotiations underscore the broader challenges in Nigeria’s fuel supply chain, as marketers and regulators navigate the logistics and pricing strategies that impact local access to fuel.

He stated: “We haven’t received products from Dangote Refinery yet, but the processes are underway, and I’ll update you once they’re finalized.”

He added, “The product isn’t available to independent marketers yet. I think he (Dangote) is adopting a systematic marketing approach, but our discussions are progressing.”

In a related development, he noted that the hike in pump price of petrol by NNPCL two days ago should not be a surprise to the people because of market forces.

He stated: “People shouldn’t be surprised. Deregulation is driven by demand and supply factors, and your supply source will dictate the selling price.”

Meanwhile, despite the N30 per litre pump price mark up (a 3% hike) to N1, 060 per litre in Abuja, marketers have largely maintained their October, 2024 prices.

Checks by Vanguard in the nation’s capital showed that major marketers, such as Conoil and TotalEnergies, continued to sell at N1,109, while others like NIPCO (N1,115), Adova Plc (N1,125), and most independent marketers (N1,150-N1,230) have kept the prices set at the beginning of October.

NNPC had previously raised petrol prices by 14.8% on October 9, 2024, increasing the rate from N897 to N1, 030 per litre following the Federal Government’s decision to end the petrol subsidy. This increase contradicted expectations that the “crude-for-Naira” deal between the Federal Government and Dangote Refinery would reduce pump prices starting October 1, 2024.

The latest hike came on the heels of a previous price jump on September 3, 2024, when NNPC raised the petrol price by 45% from N617 to N897 per litre.