The Dangote Petroleum Refinery has signed an agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million litres of Premium Motor Spirit (PMS), also known as petrol, every week.
The agreement, set to commence in the coming weeks, will see IPMAN receive up to 240 million litres of petrol monthly, revolutionizing fuel distribution nationwide. This collaboration is part of Dangote Refinery’s ambitious strategy to bolster Nigeria’s energy security while reducing reliance on fuel imports.
Confirming the deal, IPMAN’s National Publicity Secretary, Chinedu Ukadike, highlighted the significant benefits of the arrangement. “This deal allows us to lift products directly from the refinery, cutting out intermediaries and ensuring steady supply. Dangote has committed to providing 60 million litres weekly, with an option to scale up as demand grows,” Ukadike stated.
This direct supply approach is expected to streamline distribution and resolve long-standing bottlenecks that have plagued the sector for decades.
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The partnership comes at a crucial time when deregulation of the fuel market has led to increased competition and fluctuating prices. Recent weeks have seen a dip in petrol prices due to imports from the Nigerian National Petroleum Company (NNPC) and independent marketers. Experts believe this deal could further stabilize the market, creating a ripple effect of lower prices and enhanced supply.
Under the agreement, IPMAN will manage product off-take through a newly established Special Purpose Vehicle (SPV). This model eliminates the need for individual marketers to purchase smaller quantities, promoting efficiency and cost-effectiveness across the distribution chain.
Ukadike revealed that final documentation is underway, with distribution expected to kick off before the end of November. “We are concluding all discussions and paperwork. Once finalized, marketers will begin lifting products directly from Dangote Refinery,” he affirmed.
