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- The Dangote Refinery and IPMAN have signed a significant agreement to supply 240 million litres of petrol monthly
- The agreement is a result of prolonged negotiations between the marketers and the refinery
- The deal is part of the refinery’s more extensive strategy to boost fuel distribution across Nigeria as it ramps up operations.
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Dangote Refinery has reached a landmark agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million litres of petrol weekly, averaging 240 million litres monthly.
The arrangement will begin in the coming weeks and will give IPMAN about 240 million litres of petrol monthly, boosting the association’s distribution capacity.
Source: UGC
IPMAN, Dangote Refinery eliminate middlemen
IPMAN’s national publicity secretary, Chinedu Ukadike, said the deal would allow IPMAN members to lift petrol directly from the Dangote refinery without involving intermediaries.
The deal is part of the refinery’s more extensive strategy to boost fuel distribution across Nigeria as it ramps up operations.
According to Ukadike, the association will off-take the products in millions of litres, stressing that before now, most imported products in Nigeria were distributed via IPMAN.
The deal marks a new beginning in the relationship between Dangote Refinery and the independent marketers, which reportedly owns over 70% of petrol stations nationwide.
Dangote is expected to slash Nigeria’s reliance on imported fuel as the largest refinery in Africa.
The new deal is to begin in November.
The agreement with IPMAN will be scaled according to demand, Ukadike said, stressing that the 60 million litres will be given weekly.
Punch reports that the IPMAN spokesman expressed confidence that operations would commence before the end of November.
He said both parties were concluding the needed documentation to finalise the agreement.
The direct supply has been hailed as a milestone for IPMAN, which has engaged the refinery for a prolonged time and will streamline fuel distribution to eliminate logistic hassles.
Dangote crashes petrol prices for marketers
IPMAN established a Special Purpose Vehicle (SPV) to off-take the products and ensure guaranteed transaction funds. This replaced the earlier system in which individual marketers lifted products in small quantities.
Legit.ng earlier reported that Dangote and IPMAN agreed to sell the product at N940 per litre by ship and N970 by truck.
Petrol prices have been falling in recent weeks due to competition caused by imports from the Nigerian National Petroleum Company Limited (NNPC) and other marketers.
Experts believe the new deal with marketers will end supply scarcity in Nigeria, reducing costs.
Filling stations slash petrol prices as landing cost falls
Legit.ng earlier reported that data from the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported petrol has declined slightly to N975 per litre.
The adjustment shows a decrease from the previous rate of N977 per litre when calculated at an exchange rate of N1,658.93 to a dollar.
The spot landing cost also reduced slightly to N938 per litre, showing modest improvements caused by FX rate stability and supply dynamics.
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Source: Legit.ng
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