IPMAN urges Dangote Refinery to engage stakeholders, review price

The Independent Petroleum Marketers Association of Nigeria (IPMAN) on Friday called on Dangote Refinery to engage stakeholders and review its pricing strategy.

The National Assistant Secretary of IPMAN, Yakubu Suleiman, disclosed this while speaking on the ARISE TV morning show on Friday.

Mr Yakubu explained that the refinery prices are higher than other suppliers, making it difficult for independent marketers to sell products.

“Like last week, Dangote’s price is higher than other places. Because if you can go by the price, the international price of crude has already started coming down. If I could remember, as of last week, he gave N995 per litre, and you have to bring your cargo and load.

“How much will you pay for the cargo? And how much will go to the depot? And you expect independent marketers to go and sell it. Can we go and sell? Look, we have to pity Nigerians,” Mr Suleiman said.

He said Dangote needs to change his model of engagement.

According to him, IPMAN is happy for Dangote and the refinery, which is very strategic for the country. He said IPMAN, as an industry stakeholder, is very happy to work with Dangote and buy products from him.

“But the conditions must be right. For example, the issue of price. As IPMAN, Dangote is supposed to have invited us for engagement. Not only IPMAN but all stakeholders in the oil industry, like the Major Energies Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN). But unfortunately, up to this moment, there has been no engagement,” he added.

He said the independent marketers have attempted to engage Dangote Refinery multiple times, seeking a meeting to discuss synergy and pricing.

Mr Suleiman stated that Dangote has not responded positively, insisting on engaging individual marketers instead of IPMAN as a body.

He further explained that the association regulates and advises its members on which depots to source products from, considering pricing and profitability.

“We try to regulate and advise our members on which depots they are supposed to go to and load products. We don’t know the pricing. And remember, we are in a deregulated economy. We cannot just allow somebody to come and monopolise the entire system. That’s not how it’s supposed to be. We must go where the price is lower, where we get profit. That is it.”

He urged the refinery to call a stakeholders meeting.

“What we are calling for Dangote is that he is new to the business. Let him call the stakeholders meeting and engage us. So that we can sit down and serve Nigerians. He can’t do business in isolation.

“He needs people, especially IPMAN because we are the highest off-takers in this industry. He needs us, we don’t need him because there are other markets to go and buy products,” he added.

On Tuesday, Aliko Dangote, founder and president/chief executive of the Dangote Group, said his refinery has more than 500 million litres of petrol in stock, but marketers have not been picking up the product.

He questioned why the NNPC and private retailers were still importing petrol when his refinery could produce enough.

“So, I am expecting that the NNPC Ltd and the marketers should stop importing; they should come and collect what they need,” Mr Dangote said Tuesday.

Mr Dangote did not say for how long the 500 million litres of petrol had been refined and stored by his 650,000 barrels per day refinery.

However, PREMIUM TIMES reported that data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that his refinery was unable to meet the required volume of petrol sought by NNPC Ltd for three weeks.

According to the Dangote Evacuation Report seen by this newspaper, between 15 September and 5 October, the refinery delivered only 148 million litres of petrol, instead of 575 million litres.

On Thursday, Dangote Refinery said it has not received any payments for the purchase of refined petroleum products from the IPMAN. The company made this known in reaction to a claim by the marketers that they were unable to load petrol from the refinery for days.