Dangote meets marketers Tuesday to discuss new petrol prices
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to meet with Dangote Petroleum Refinery between Tuesday and Wednesday to finalize agreements regarding petrol pricing and lifting from the facility.
Sources revealed on Sunday that the Petroleum Retail Outlet Owners Association of Nigeria had been asked by the $20 billion Lekki-based refinery to resend its request for petrol lifting.
In related news, PETROAN expressed optimism that petrol prices could decrease in the coming days as competition in the downstream oil sector intensifies with marketers sourcing fuel from the refinery.
IPMAN emphasized that the upcoming agreement with Dangote refinery is a vital step in its ongoing efforts to streamline the lifting of petroleum products, which will enhance the stability and efficiency of Nigeria’s fuel supply chain.
Last week, the Federal Government authorized petroleum marketers to lift petrol directly from Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC).
Wale Edun, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, stated, “Moving forward, petroleum product marketers can now purchase PMS (petrol) directly from local refineries without the intermediary role of NNPC.
“Marketers are encouraged to engage in direct purchases from refineries based on mutually negotiated commercial terms, which will foster competition and enhance market efficiency.”
Providing an update on Sunday, Chinedu Ukadike, National Publicity Secretary of IPMAN, expressed the association’s eagerness to meet with officials from Dangote Refinery to establish a productive business relationship.
In an interview monitored, Ukadike noted that the association has acquired tank farms to enhance its storage capabilities, addressing a challenge that previously hindered operations.
He stated, “We hope to sit down with Dangote maybe Tuesday or Wednesday, and if they provide us with a template or price, we will proceed to Dangote. I want to assure you that we have everything we need to off-take whatever Dangote offers us. I’m not sure why there seems to be hesitation in discussions with marketers; perhaps it’s political.
“The more proactive we are in establishing distribution lines, the lower prices will become. We’re not afraid of competition; we have organized ourselves and are ready to compete, as this is about survival of the fittest.
“The issue of lacking tank farms is resolved, and we are now equipped with farm tanks. Wherever Dangote indicates they will supply us with products, we are ready to distribute them to our marketers.”
Billy Gillis-Harry, President of PETROAN, also commented to newsmen, stating that their group has been asked to resend their request to lift petrol from the plant.
“We have reached out to Dangote several times, and they are fully aware of our efforts. One of their executive directors contacted me to say they plan to set up a meeting with us, so we are awaiting that development. Hopefully, we can arrange it this week.”
“We are willing to take products from all of them, NNPC, traders, importers, Dangote refinery, modular refineries, etc. So, we are in that pursuit. We have not received confirmation of the meeting with Dangote yet, but we have been told to resend our request, which we have done.
“And I think that is a positive response compared to before when they were just keeping quiet. So, any moment from now PETROAN members should start lifting products from the Dangote refinery and it is good news for us and everyone,” Gillis-Harry stated.
On whether the price of petrol would drop in the future, the PETROAN president added, “The price can be knocked down to ₦700/litre; it depends on the volatility of the market and this does not always mean upward prices, it could also mean prices coming down.
“If we have massive supply and there is a lot of products in Nigeria, obviously everybody will be looking for just minimal profit. Our business is focused on turnover, so people may cut prices down.”
Meanwhile, Ukadike, the IPMAN spokesperson, stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority had issued a bulk purchase license for independent marketers so that they could off-take from Dangote refinery.
“The NMDPRA has issued a bulk purchase license for independent marketers so that we can offtake from the Dangote refinery. We want this to take effect immediately. We have also been promised an import license so that we can import. These are the factors of deregulation.
“When you implement it, you have put all the stakeholders in the same line so that the competition will be healthy. It is not putting some people before others. How can we buy products at ₦1,040 and say there is competition? It is designed to edge us out and make us dependent on NNPC and its sources.
“The NMDPRA boss told our national president that we would be issued an import license on Friday. But you know all these processes have bureaucratic procedures. Before we didn’t have this chance but today, the situation has improved,” he noted.
On the debt owed to oil dealers by the NNPC, Ukadike said, “The NNPC boss has agreed to load out all our tickets that are in their system and unlock the money. Sometimes we get these monies from bank loans and when it is locked up, we incur bank charges which also affect the price of fuel.
“They haven’t loaded us out as I speak to you now; they have also not revealed the new price. It is only when they do that, that we will look at the remittance we are going to pay but our president insisted that since this money has been locked up with them, they should give us at the old price so that we can use it to cushion the bank charges and other expenses we have incurred so far.
“By Monday or Tuesday, the new price will be out and I will announce it. We don’t want that impression that independent marketers are selling higher than NNPC.”
Continuing, IPMAN sought the government’s assistance in financing by creating an energy bank to assist marketers following the huge cost of interest rates affecting price increases.
“We are working with security agencies to ensure that products are not stolen out of this country, and products meant for independent marketers go to their stations. Also, we are working to ensure there is nothing like adulteration.”
He said independent marketers were on the verge of collapsing because of the huge amount invested in buying one truck of 45,000 litres of petrol.
“Before the subsidy removal, we bought products at ₦8.1m, but now we are buying it close to ₦50m. How many people can survive that?”
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