Dangote to meet PETROAN on fuel supply deal

The management of Dangote Refinery is set to meet with officials of the Petroleum Products Retail Outlet Owners Association of Nigeria to discuss direct petrol supply arrangements.

This development comes just a day after the Independent Petroleum Marketers Association of Nigeria announced it had reached an agreement with Dangote Refinery to purchase petrol directly, bypassing intermediaries.

PETROAN Publicity Secretary, Joseph Obele, told our correspondent on Tuesday that the refinery had already sent an email to PETROAN President, Dr. Billy Harry, proposing a business meeting in the coming days.

According to Obele, Dr. Harry has formed a team of seven representatives, led by himself, to attend the meeting on behalf of PETROAN.

“The Head of Commercial at Dangote Refinery has sent an email to the National President of PETROAN, Dr. Billy Harry, regarding an upcoming strategic business meeting,” Obele said.

“At this proposed meeting, PETROAN’s primary objective will be to ensure affordable, high-quality products for consumers while adhering to all regulatory standards and industry best practices,” he emphasised.

Obele expressed optimism that “the meeting will be mutually beneficial—a win for the public, Dangote Refinery, and petroleum retail outlet owners.”

In a statement on Tuesday, PETROAN’s National Headquarters commended Dangote Refinery’s management for establishing a direct sales agreement for Premium Motor Spirit (PMS) with IPMAN, removing the role of intermediaries previously played by the Nigerian National Petroleum Company Limited.

PETROAN also noted indicators that PMS prices could decrease soon.
“Factors contributing to this include recent discussions between Dangote Refinery and key industry stakeholders, as well as a reduction in the landing costs of PMS in Nigeria, reflecting global market adjustments and improvements in the supply chain.”

PETROAN further highlighted that the oil and gas sector is sensitive, and strategic discussions are essential to maintaining operational efficiency and sector harmony.

“We once again commend Dangote Refinery for recognising the importance of stakeholder engagement, and we are optimistic that the primary beneficiaries will be the general public,” PETROAN stated.

The PUNCH recalls that PETROAN recently reported reaching an agreement with international traders to import petrol and offer it at prices lower than those from Dangote Refinery and the NNPC.