Independent Petroleum Marketers Begin Lifting Petrol from Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced lifting Premium Motor Spirit (PMS), commonly known as petrol, directly from the Dangote Petroleum Refinery, located in the Lekki Free Trade Zone, Lagos.

This development follows an agreement finalized between IPMAN and the refinery last month. According to IPMAN’s National Publicity Secretary, Chinedu Ukadike, millions of liters of petrol have already been lifted by members since late November.

Ukadike explained that while full documentation is being finalized, marketers had initially begun loading the product through MRS Oil as part of a pre-arranged agreement with the refinery. “There is a pre-arrangement we had. Our experts are putting things together for our documentation. Dangote refinery made some products available to us in MRS, and we started the loading gradually in November,” he stated.

This marks a significant step in integrating Dangote Refinery’s output into the domestic fuel supply chain, with expectations of improved fuel availability and reduced reliance on imports.

Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has clarified that the current arrangement for lifting Premium Motor Spirit (PMS) from the Dangote Refinery is not akin to buying through middlemen. He explained that the system is a temporary measure to streamline operations and ensure a smooth transition.

“This is not an issue of a middleman. We have to start with something first to bridge that gap,” Ukadike said, emphasizing that IPMAN members have begun purchasing PMS directly from the $20 billion refinery.

He noted that the refinery’s recent reduction of PMS prices from ₦990 per liter to ₦970 has significantly boosted local market demand. According to Ukadike, the direct purchase agreement between IPMAN and Dangote has contributed to a decline in petrol prices, particularly by eliminating middlemen and reducing profiteering.

“The most important thing is that IPMAN members have started buying directly from Dangote. We’ve been uploading products stored in the tank and meant for commuters. This direct access eradicates the era of middlemen and ensures quicker access to Dangote products once payments are made,” he explained.

Ukadike added that the price reduction is expected to bolster the economy by lowering transportation costs and improving fuel availability. The partnership marks a pivotal move towards stabilizing petroleum product pricing in Nigeria while enhancing supply efficiency.