IPMAN: Marketers Begin Purchase of Petrol at N990/litre from Dangote Refinery
The Independent Petroleum Marketers Association of Nigeria has revealed that over 30,000 of its members are ready to buy Premium Motor Spirit, popularly called petrol in bulk, from the Dangote Petroleum Refinery.
IPMAN also disclosed that the price of petrol from the $20 billion Lekki-based plant was N940/litre and N990/litre when purchased using ships and trucks, respectively.
Following the deal to begin direct lifting from the Dangote refinery, it is predicted that the independent oil marketers might not import petrol again.
Speaking on Channels Television on Tuesday, IPMAN President, Abubakar Garima, said the pump prices of petrol at its retail outlets will drop following the agreement with the Dangote refinery to lift products directly from the plant.
On Monday, IPMAN agreed with the Dangote refinery to directly lift petrol, diesel, and other petroleum products.
This agreement follows months after the Nigerian National Petroleum Corporation suspended its plan to serve as the sole off-taker of petroleum products from the 650,000 barrels per day refinery.
The IPMAN president explained that the Dangote refinery had been obliged to allow marketers to lift PMS, AGO, and DPK directly for onward supply to their depots and retail outlets but didn’t reveal the price.
Giving an update on pricing during the interview, the IPMAN national officer said the Refinery has provided two different rates for marketers based on their preferences.
He said marketers can load at the gantry at a price of N990 per litre or N940 through vessel transportation.
Garima said, “Presently, we have been given two different arrangments on how to buy fuel from the refinery. There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre.
“The difference is because we have to load it and carry it to another part of the state. We use vessels to carry these products and there is another one to load from the gantry.
“For Port Harcourt, Warri, Calabar, we have to use vessels because there is no Dangote loading gantry there, we have to carry it to our private depot and discharge and distribute it to our members.”
According to repor, the new price is lower than the N960 and N990 per litre revealed by the refinery for ships and trucks last week.
Garima noted that the collaboration aims to ensure a consistent and affordable supply of Premium Motor Spirit and other products nationwide.
He further projected that the petrol price may be reduced by N50 or more, depending on the location of purchase.
Garima explained that direct purchases from the 650,000-barrel-per-day refinery will eliminate payments to intermediaries, such as the Nigerian National Petroleum Company and depot owners.
According to him, this reduction in costs will be reflected in the prices of petrol within the coming weeks.
“We have the overall market in the country. We go everywhere in the country. The implication goes beyond the issue of price, but still, price is the main target.
“The masses are looking for how we, Independent Petroleum Marketers, can reduce price for them. So the price too will reduce because we are not buying through the third party.
“So the profit that we have been giving to the third party like NNPC and depot owners will be reduced. That is the issue.
“For instance, the current price in Maiduguri now is N1,200 per litre. So with these current changes, it may likely reduce to N1,150, which there is a reduction of N50. So that’s N1,150. It may even be below that.
“And as we continue, you know, this thing, since it’s deregulation. Yes. As we continue. It can go down. It can go down continuously because, provided that the product is available, you may find that the market will come a little bit low, and then the naira will start appreciating. And then if the crude oil price is reduced, automatically, the same thing will be reduced.
Garima also highlighted that this arrangement will help end fuel scarcity, as products will be more readily available.
“Again, the availability is also there. If a marketer pays for a product before, these retailers hold our money before supplying us with fuel. That’s the reason why you may find sometimes these filling stations don’t have fuel.
“But now, since we are getting the product directly from the Dangote refinery, the issue of delay is eliminated. Immediately, we get the product, we discharge to our filling stations,” he added.
Furthermore, Garima revealed that the NNPC has begun settling its N4bn debt owed to marketers.
“The NNPC has been paying our money back. We have been loading. Our money with them is reducing drastically. That one is not a problem for us now.
“The only thing still is that there are some remaining balances that they have not been able to pay our marketers to load the products. I spoke with the MD retail of NNPC and he told me that our balance will soon be sorted out,” Garima said.
On how much Nigerians will purchase, he said, “With this recent development, definitely anywhere you go, you will find that at the end of the day, we have the lowest price.”
Confirming this, the IPMAN National Publicity Secretary, Chinedu Ukadike, has stated that the association has started the completion of the necessary documentation to begin lifting products.
