In a significant stride towards making petroleum products more affordable and accessible, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached a new agreement with Dangote Petroleum Refinery.
This arrangement will allow IPMAN to lift products directly from the refinery, a move that National President Abubakar Garima announced during a press briefing in Abuja. The deal aims to ensure a steady and affordable fuel supply across Nigeria.
During the announcement, Garima detailed that Dangote Refinery has granted IPMAN direct access to petroleum products such as Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK).
These products will now be routed directly to IPMAN depots and retail outlets nationwide. He emphasized that this arrangement is expected to address Nigeria’s fuel shortage issues and ultimately provide petrol at more affordable rates.
“Following our recent meeting with Alhaji Aliko Dangote and his management team, Dangote Refinery has agreed to allow IPMAN to lift PMS, AGO, and DPK directly,” Garima said. “This arrangement will create a consistent supply of PMS across the country, helping to lower prices for Nigerians.”
This agreement follows a recent dispute, where IPMAN members alleged they were unable to access fuel from the Dangote refinery despite prepayments of N40 billion to the Nigerian National Petroleum Company Limited (NNPCL).
Dangote Refinery, however, countered that it had not received payments from IPMAN for refined products, suggesting a disconnect in communication and logistics. The new agreement appears to resolve these issues, with IPMAN signaling full support for the refinery.
Garima highlighted the far-reaching benefits of this deal, urging IPMAN members to rely on Dangote and other Nigerian refineries for their fuel needs.
He pointed out that this would support the country’s foreign exchange market by reducing reliance on imported fuel, furthering President Bola Tinubu’s "Renewed Hope Agenda" for economic stabilization and growth.
“All IPMAN members should fully support the Dangote refinery,” Garima continued. “This partnership promotes backward integration, which has long-term benefits for our foreign exchange markets and job creation within Nigeria.”
Energy expert Kelvin Emmanuel weighed in on the agreement, emphasizing the financial benefits. According to him, the deal will eliminate financing and margin costs currently imposed by NNPCL, specifically mentioning the reduction of letter-of-credit and margin costs that IPMAN has been shouldering.
“What’s exciting about this deal,” Emmanuel explained, “is that it will remove the $28 per metric tonne financing cost and the $26.48 per metric tonne margin currently borne by IPMAN. This move stands to make fuel significantly cheaper for end-users.”
With this landmark deal, IPMAN and Dangote Refinery have set the stage for a new era in Nigeria’s fuel distribution network, one that could lead to affordable, locally-sourced fuel across the nation.
This partnership not only reinforces IPMAN’s dedication to providing Nigerians with cost-effective petroleum products but also aligns with the country's broader economic goals for sustainable development.