IPMAN hopes for lower price as talks with Dangote Refinery begin

There is uncertainty over the commencement of lifting of premium motor spirit (PMS) otherwise known as petroleum from Dangote Refinery by the Independent Petroleum Marketers Association of Nigeria (IPMAN), Daily Trust can report. It was learnt that the independent marketers have opened discussion with the management of Dangote following the intervention of the Department of […]

There is uncertainty over the commencement of lifting of premium motor spirit (PMS) otherwise known as petroleum from Dangote Refinery by the Independent Petroleum Marketers Association of Nigeria (IPMAN), Daily Trust can report.

It was learnt that the independent marketers have opened discussion with the management of Dangote following the intervention of the Department of State Service (DSS) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

IPMAN had last tackled the Nigerian National Petroleum Company Limited (NNPCL), saying the price it was getting fuel from the national oil company was higher than the N898 per litre from Dangote.

According to the National President, Abubakar Maigandi, the NNPCL has been holding about N15bn belonging to the independent marketers for the past three months.

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But an IPMAN source who spoke with our correspondent yesterday said the NNPCL had agreed to allow IPMAN to buy directly from Dangote.

This followed the decision of the national oil company to quit its middle-man role in the distribution of fuel from the 650,000-capacity refinery.

The Federal Government had stated over the weekend that oil marketers are now free to negotiate purchase of petrol directly from the Dangote refinery without recourse to the NNPCL.

Minister of Finance and Coordinating Minister for the Economy, Wale Edun who disclosed this had said, “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency.”

A top IPMAN member who spoke with our correspondent on the condition of anonymity confirmed that IPMAN had opened discussion with Dangote refinery to begin directing lifting of PMS.

However, the highly placed member said the independent marketers are anticipating getting the product at a cheaper price from the refinery.

He said, “Yes it is true we are in talking terms with Dangote but the discussion is still ongoing. Our expectation is that we would get it at a cheaper rate from Dangote so that we can also sell it cheaply.

“But as of today (Sunday) we are still at the mercy of NNPCL until we finalise discussion with Dangote,” he said.

It was not clear yesterday whether the IPMAN would get it below or around the same price the product is sold in the market.

The NNPCL, the number one marketer in the country, adjusted its pump price last week, raising the product from N855 to N998 per litre in Lagos and above N1000 in other states.

So marketers said they would be happy if they would be able to buy at about the same rate from Dangote refinery.

Anthony Chiejina, Chief Corporate Communications Officer of Dangote Group did not respond to our correspondent’s enquiry on when IPMAN members would begin direct purchase of PMS from Dangote refinery.