Dangote & IPMAN Secure 240M Litres of Petrol Supply Deal

The Dangote Petroleum Refinery has announced plans to supply 60 million liters of Premium Motor Spirit (PMS), commonly known as petrol, to the Independent Petroleum Marketers Association of Nigeria (IPMAN) on a weekly basis.

This arrangement, which totals approximately 240 million liters monthly, is contingent on the level of patronage from IPMAN members.

Sources within the association revealed that the refinery's commitment is part of its broader strategy to enhance production and secure funding for crude oil imports. The $20 billion facility, located in Lekki, aims to significantly increase its output in response to market demands.

In recent developments, oil dealers noted a drop in petrol prices attributed to heightened competition following the deregulation of the sector. The Nigerian National Petroleum Company Limited and other marketers have imported over two billion liters of PMS within a span of 42 days, contributing to this price decline.

Chinedu Ukadike, IPMAN's National Publicity Secretary, confirmed that members can lift any quantity of PMS allocated by Dangote, emphasizing that independent marketers play a crucial role in distributing most of the fuel imported into Nigeria.

He highlighted a recent agreement allowing IPMAN members to source PMS directly from the refinery without intermediaries.

Ukadike stated, “We are going to off-take the product in millions of liters... We can off-take the products, no matter the millions of liters that are produced.” He further clarified that while there is no fixed volume for off-take, Dangote has offered over 60 million liters weekly based on demand.

When asked about the timeline for beginning these operations, Ukadike expressed optimism that lifting would commence before the end of November.

He mentioned ongoing discussions and necessary documentation between IPMAN and Dangote, indicating that both parties are finalizing arrangements.