See what to expect as Marketers negotiate with Dangote refinery on petrol price

• IPMAN are currently locked in negotiation with the Dangote refinery for the direct loading of petrol
• The agreement reached could have a bearing effect on fuel pump prices at filling stations nationwide
• The association members control over 150,000 retail outlets stations across the country and could be a game changer

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed ongoing negotiation with Dangote Refinery to secure a direct petrol supply.

According to Abubakar Maigandi, the National President of IPMAN, the negotiation is going well, and the agreement is very close.

Marketers and Dangote in negotiation Photo credit: Bloomberg/contributor
Source: Getty Images

He disclosed this while speaking at the inauguration of a monitoring and surveillance taskforce team to prevent oil bunkering, pipeline vandalism, adulteration of petroleum products, and other sharp practices on Wednesday in Abuja, Punch reports.

Legit.ng reported that oil marketers have resolved pricing issues with the Nigerian National Petroleum Company Limited(NNPCL).

NNPCL agreed to lower the ex-depot price of petrol to N955 per litre for marketers, which is N3 discount from the previous quoted price.

There is also a go-ahead from the federal government for oil marketers to buy directly from the Dangote refinery.

Oil Marketers look to get the best deal from the Dangote refinery

Maigandi explained that the association is in talks with the Dangote Refinery on all necessary details and expressed optimism that the agreement would soon be concluded.

He also confirmed that the pricing issue with the NNPCL has been resolved, and the association is focused on securing a deal with Dangote.

He said:

"We are pleased to announce that we are close to finalizing arrangements with Dangote Refinery to lift PMS directly from their facility."We have already received our funds back from NNPCL and are now focused on negotiating with other partners, particularly Dangote."Our discussions with Dangote are ongoing, as we work toward securing a direct supply of products from the refinery."

Marketers speak on Dangote petrol price

Legit.ng earlier reported that oil marketers in Nigeria would buy petrol directly from Dangote Refinery. However, they would face price challenges.

The reason was a price difference between Dangote petrol price and imported PMS.

While the Dangote Refinery can supply much of Nigeria’s domestic petrol needs, the government strictly controls pricing via the Nigerian National Petroleum Company Limited (NNPC), creating a significant hurdle for marketers.

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Source: Legit.ng