The Independent Petroleum Marketers Association of Nigeria (IPMAN) has finally agreed in a new agreement with Dangote Refinery to supply 60 million litres of Premium Motor Spirit (PMS), commonly known as petrol, weekly.
iDeemlawful understands that this arrangement equates to a total supply of 240 million litres per month.
According to IPMAN, the refinery’s offer to provide 60 million litres weekly will depend on the association’s demand and patronage.
The $20 billion Lekki-based refinery is also reportedly seeking to raise substantial funds to facilitate crude oil imports and expand its production capacity.
In addition, oil marketers noted on Sunday that petrol prices have begun to decline due to increased competition following the deregulation of the sector.
This comes as the Nigerian National Petroleum Company Limited (NNPCL) and other marketers imported over two billion litres of PMS within a span of 42 days.
Speaking with The PUNCH, IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that members of the association could lift substantial quantities of PMS directly from the Dangote Refinery, bypassing intermediaries.
He highlighted that IPMAN has historically been responsible for distributing most of the imported fuel in Nigeria.
“We are going to off-take the product in millions of litres. Before now, most of the imported products in Nigeria were distributed through IPMAN. So we can off-take the products, no matter the millions of litres that are produced,” Ukadike stated.
On the specifics of the deal, Ukadike explained that IPMAN could lift a minimum of 10 million litres, with the refinery offering up to 60 million litres weekly based on demand.
“We can take from 10 million litres and above and Dangote has offered to give us over 60 million litres depending on our patronage.
“The 60 million litres is to be given weekly. And we can take and distribute it across the country once we start lifting the product from the refinery,” Ukadike disclosed.
He also confirmed that fuel distribution under this arrangement is expected to commence before the end of November.
“We are finalising discussions. You know the meeting between IPMAN and the Dangote refinery was held last week and documentation is in process. So, there are still a few pieces of documentation that we are doing now. Once they are sorted, we will off-take PMS from the plant.
“This is going to happen before the end of this month. The Dangote Group has assured us that even if we want to start taking products from today, we should start,” Ukadike added.
IPMAN has also developed a Special Purpose Vehicle (SPV) to streamline product off-take and ensure efficient nationwide distribution.
This move eliminates the previous practice where individual marketers purchased limited quantities and faced challenges, such as delayed deliveries and locked-up funds.
“IPMAN has gathered its members and we have developed a Special Purpose Vehicle to off-take the products from the refinery. So, the issue of individuals going to buy one or two trucks has gone. IPMAN is now going to be a major distributor and our money will be guaranteed.
“The time has gone when some dealers will tell us they have products when they actually do not, and they will lock up our money in their system. So, we are taking this as a very effective measure to be able to ensure that the distribution value chain is efficient,” Ukadike stated.
This strategic partnership is expected to enhance fuel availability and distribution efficiency across Nigeria while solidifying IPMAN’s role in the downstream sector.
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