The Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced lifting Premium Motor Spirit (PMS) directly from the Dangote Petroleum Refinery, marking a significant shift in Nigeria’s downstream oil sector.
This development follows an agreement reached between IPMAN and the refinery in November. The association’s National Publicity Secretary, Chinedu Ukadike, confirmed in an interview that independent marketers have already lifted millions of litres of petrol from the refinery, located in the Lekki Free Trade Zone, Lagos.
Ukadike explained that the lifting initially began through MRS Oil as part of a pre-arranged plan while documentation and other technicalities were finalized. He clarified that this transitional process was not equivalent to involving a middleman but rather a temporary measure to bridge logistical gaps.
“IPMAN members have started buying Dangote products directly through MRS. The most important thing is that we are now accessing Dangote refinery products without intermediaries,” he said.
The Dangote refinery’s decision to lower its PMS price from ₦990 to ₦970 per litre has spurred increased demand. Ukadike noted that eliminating middlemen has also contributed to reduced costs, benefiting both marketers and consumers.
“The reduced price from Dangote has influenced the drop in petrol costs across the market, improving accessibility and strengthening the economy,” he added.
Previously, the Nigerian National Petroleum Company Limited (NNPC) served as the sole intermediary for purchasing fuel from Dangote refinery. However, after challenges in the supply chain and demands for direct access, the Federal Government announced that marketers could negotiate directly with refineries.
“Marketers are now able to purchase PMS directly from refineries under mutually agreed terms, promoting competition and efficiency,” said Wale Edun, Minister of Finance and chairman of the naira-for-crude committee, in October.
In November, IPMAN National President Abubakar Maigandi announced a historic agreement with Dangote Refinery to supply PMS, Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) directly to IPMAN’s depots and retail outlets.
“This agreement allows us to distribute products more efficiently and at competitive prices,” Maigandi said.
IPMAN has expressed reservations about the refurbished Port Harcourt refinery, citing high PMS prices of ₦1,030 per litre as a deterrent. “If Port Harcourt’s price remains at ₦1,030, we will not patronize them. We will buy where it is cheaper,” Ukadike stated, urging the NNPC to review the pricing structure.
Data from the National Bureau of Statistics (NBS) revealed that Nigeria imported PMS worth ₦3.32 trillion and diesel worth ₦1.33 trillion in Q3 2024. Meanwhile, crude oil exports were valued at ₦13.40 trillion, accounting for 65.44% of total exports. Non-crude oil exports stood at ₦7.08 trillion, with non-oil products contributing ₦2.5 trillion or 12.21% of total exports.
The Dangote Refinery’s entry into direct sales marks a transformative moment for Nigeria’s oil sector, with potential long-term benefits for both the economy and consumers.
