Marketers reveal why NNPC remains the sole off-taker of Dangote petrol

• Independent Petroleum Marketers Association of Nigeria (IPMAN) has provided insight into its recent meeting Dangote Refinery management
• The marketers disclosed that the Nigerian National Petroleum Company Limited (NNPC) remains the sole off-taker of Dangote petrol
• They said that they have asked their members to initiate direct petrol purchases from the Dangote Refinery immediately

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Petroleum marketers have explained that the Nigerian National Petroleum Company Limited (NNPC) remains the sole off-taker of Dangote petrol despite the recent order of the Nigerian government that oil marketers can begin loading petrol from the refinery.

They revealed on Wednesday, October 16, 2024, that the NNPC would continue to off-take products from the mega refinery until the termination of the agreement with the facility.

Marketers reveal that there is still an agreement between Dangote and NNPC Credit: Bloomberg/Contributor
Source: UGC

NNPC and Dangote refinery agreement still exists

The marketers, however, did not disclose when the agreement between the state oil firm and the refinery would end.

On October 11, 2024, the Nigerian government disclosed via the Ministry of Finance that oil marketers can now negotiate the direct purchase of petrol from the 650,000 bpd-capacity refinery without going through the NNPC.

However, after a meeting with the Dangote refinery officials on Tuesday, October 15, 2024, members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) stated that NNPC was still the sole distributor of Dangote petrol, pending the termination of the agreement between the two parties.

IPMAN members to buy petrol from Dangote

The Western Zone of IPMAN issued a notice to members signed by Chairman, South West, Dele Tajudeen, saying that the association’s national vice president, zonal chairman of Western Zone, IPMAN members, and PTD Zonal Chairmen met with the vice president of Dangote Group and other refinery staff.

Punch reports that the notice also revealed that the IPMAN National Executive Council would hold a meeting in Abuja soon.

Marketers to begin petrol import

The development comes as oil marketers disclosed that the volume of petrol produced by the Dangote Refinery cannot meet domestic demand.

As a result of the development, marketers plan to import the product to make up for the supply from the refinery’s shortfall.

NNPC sells petrol to marketers at new rate

Legit.ng earlier reported that the NNPC has agreed to sell petrol to Independent Petroleum Marketers Association of Nigeria (IPMAN) members at N995 per litre.

The development comes amid the Department of State Services intervention in the face-off between the marketers and the state oil firm.

Hammed Fashola, IPMAN’s national vice president, disclosed that the DSS intervention solved several marketers' problems.

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Source: Legit.ng