More than 30,000 members of the Independent Petroleum Marketers Association of Nigeria plan to purchase large quantities of Premium Motor Spirit, also known as petrol, from the Dangote Petroleum Refinery.Additionally, IPMAN disclosed that the cost of gasoline from the $20 billion plant located in Lekki was N940 per litre for ships and N990 per litre for trucks.Our correspondents also learnt that after the agreement to start direct lifting from the Dangote refinery, the independent oil marketers might stop importing petrol.
Dangote: Members of IPMAN Load Gasoline For N990 Per Litre.
IPMAN President Abubakar Garima stated on Channels Television on Tuesday that the agreement with the Dangote refinery to import goods straight from the plant will result in lower petrol pump prices at its retail locations.
The Dangote refinery and IPMAN reached an agreement on Monday to directly lift petrol, diesel and other petroleum products.The Nigerian National Petroleum Corporation halted its plan to be the only off-taker of petroleum products from the refinery, which produces 650,000 barrels per day, months prior to this agreement.Without disclosing the cost, the IPMAN president clarified that the Dangote refinery was required to permit marketers to lift PMS, AGO, and DPK directly for subsequent delivery to their depots and retail locations.
During the interview, the IPMAN national officer provided an update on pricing, stating that the Refinery has offered marketers two different rates depending on their preferences.According to him, marketers can pay N990 per litre or N940 via vessel transportation to load at the gantry.”At the moment, we are provided with two distinct arrangements regarding the purchase of fuel from the refinery,” Garima stated. At a price of N940 per litre, we can load the vessels and transport them to our different depots. After that, it costs N990 per litre for the depots.
“The difference is because we have to load it and carry it to another part of the state. These goods are transported by vessels, and another one is used to load from the gantry.We must transport it to our private depot, discharge it, and distribute it to our members in Port Harcourt, Warri, and Calabar since there is no Dangote loading gantry there.According to our correspondent’s checks, the new price is less than the N960 and N990 per litre that the refinery disclosed last week for trucks and ships.According to Garima, the partnership intends to guarantee a steady and reasonably priced supply of Premium Motor Spirit and other goods across the country.
He also predicted that, depending on where you buy it, the price of petrol might drop by N50 or more.Garima clarified that direct purchases from the refinery, which produces 650,000 barrels per day, will do away with the need to pay middlemen like depot owners and the Nigerian National Petroleum Company.In the upcoming weeks, he said, the price of petrol will reflect these cost reductions.”We have the nation’s entire market. We travel all over the nation. Although the implication extends beyond the price issue, price remains the primary focus.
“The general public wants to know how we, Independent Petroleum Marketers, can lower prices for them. Therefore, since we are not purchasing through a third party, the price will also go down.Therefore, the profit that we have been providing to depot owners and other third parties, such as NNPC, will be decreased. That is the problem.In Maiduguri, for example, the price per litre is currently N1,200. Therefore, with these recent adjustments, it might drop to N1,150, which is a N50 decrease. So that’s N1,150. It may even be below that.
Additionally, as we proceed, you are aware that this is a deregulation issue. Yes. As we go on. It may fall. It can continuously decline because, if the product is available, the market may drop a little, at which point the value of the naira will begin to rise. The same thing will automatically decrease if the price of crude oil drops.Garima added that by making products more accessible, this agreement will aid in putting an end to the fuel shortage.Once more, it is also available. These retailers hold our money before providing us with fuel if a marketer has already paid for a product. Because of this, you might occasionally discover that these petrol stations are empty.
However, the problem of delay has been resolved since we are now receiving the product straight from the Dangote refinery. As soon as we receive the product, we release it to our filling stations,” he continued.Garima also disclosed that the NNPC has started paying down its N4 billion debt to marketers.
“The NNPC has been paying our money back. We have been loading. The amount of money we spend with them is sharply declining. We are no longer having trouble with that one.The sole issue remains that they have not been able to pay our marketers to load the products on some outstanding balances. Our balance will be resolved shortly, according to the NNPC MD of retail, with whom I spoke,” Garima stated.
“With this recent development, definitely anywhere you go, you will find that at the end of the day, we have the lowest price,” he said, referring to the amount that Nigerians will buy.Chinedu Ukadike, the IPMAN National Publicity Secretary, has confirmed that the association has begun completing the paperwork required to start lifting products.In an exclusive interview, Ukadike further stated that the product would be bought in large quantities for its members.”We are going to be doing it comprehensively, in an off-taker manner, for the time being,” he stated. As instructed by our president, all independent marketers will purchase from Dangote.
“We are currently assembling our documentation regarding the best time to begin loading, but the good news is that we have been given authorisation to do so.”In the meantime, Hammed Fashola, the vice president of IPMAN, informed one of our correspondents that if petrol is available locally, importation is no longer necessary.According to Fashola, IPMAN had stated from the beginning that it would back the Dangote refinery and that everyone would benefit from the new deal.”From the beginning, we have stated that we are prepared to collaborate with Dangote. He needs our encouragement. We are acutely aware of that. These factors lead us to conclude that both Dangote and IPMAN will benefit. I have no doubt that the cost will be affordable. We only care about the cost. We can proceed as soon as the price is acceptable to us,” he said.
Fashola responded, “Once we are having it as we need it, what is the need to import again?” when asked if this meant IPMAN would no longer pursue the licence to import petrol.According to Fashola, the lifting of fuel has not yet started because both parties are still setting up some logistics.”The lifting date has not yet been set. Some logistics still need to be worked out. You will not simply pull up in your truck and head to Dangote. Payment methods and other things are still things we need to do. We also need to bring our members along. They need to be made aware of the nature of the transaction. Therefore, it is still in progress, and we will begin lifting shortly. “I would prefer not to provide a specific date,” he revealed.
Dangote and PETROAN meet
Similar to IPMAN, the Dangote refinery’s management will meet with representatives of the Petroleum Products Retail Outlet Owners Association of Nigeria to talk about the possibility of lifting petrol.According to PETROAN Publicity Secretary Joseph Obele, the refinery had already mailed Billy Harry, the association president, asking for a business meeting.Obele claimed that in order to represent PETROAN at the meeting, Harry had assembled a team of seven people under his leadership.
“To anticipate a potential strategic business meeting in the upcoming days, the Head of Commercial at the Dangote refinery has written to Dr. Billy Hary, the National President of PETROAN.”PETROAN will be represented at that important business meeting by a team of seven individuals assembled by the National President and led by him.”We must emphasise at the proposed meeting that PETROAN’s main goal is to offer consumers high-quality, reasonably priced products while adhering to all legal requirements and industry best practices,” he said.
Dangote exports petrol
In the meantime, the Dangote refinery has committed to exporting over 200,000 metric tonnes of its petrol overseas.The refinery has signed its first export orders for its petrol and will start shipping the product “as soon as the ships arrive,” according to a report by S&P Global Commodity Insights that cited an insider source.It stated that the refinery issued a public tender for the fuel type in the first week of November, marking its first attempt to sell petrol overseas, but later seemed to give in to public pressure by withdrawing the offer.
Two verified specified products with a sulphur content of 150 parts per million were included in the 40,000 mt of petrol that were first offered for sale by the refinery, according to three West African traders.According to one source, the refinery referred to the first tender as a “mistake,” while another described the action as “controversial.” Dangote still supplies less than one-third of Nigeria’s domestic petrol needs.On November 11, the refinery official stated that the company had enough excess product to start exporting, even though he confirmed that the 40,000 mt tenders had been cancelled. He declared, “We have the stocks.”
