Marketers Begin Direct Loading from Dangote Refinery
LAGOS — The Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced direct lifting of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery, signaling a transformative step in Nigeria’s oil and gas industry. This development follows an agreement reached last month, allowing independent marketers to bypass intermediaries and access products at reduced costs.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that loading operations began in late November. Before this, marketers accessed products through an interim arrangement with MRS Oil pending the full implementation of the agreement with Dangote Refinery. Ukadike clarified that this approach was not a middleman arrangement but a bridging mechanism to streamline supply.
The Dangote Refinery, located in Lagos’ Lekki Free Trade Zone, recently reduced the price of PMS from ₦990 to ₦970 per litre. This price adjustment has spurred increased demand and provided relief to marketers, who previously relied on less cost-efficient supply chains. Ukadike emphasized that eliminating intermediaries has reduced profiteering, allowing for direct transactions that promote efficiency.
The Federal Government’s decision to end the Nigerian National Petroleum Company Limited’s (NNPC) role as the sole off-taker of Dangote products was pivotal in this shift. Marketers can now purchase directly from the refinery under mutually agreed commercial terms, a policy expected to enhance competition and stabilize the market.
IPMAN President Abubakar Maigandi highlighted the association’s successful negotiations with Dangote Refinery, securing direct access to PMS, Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK). He noted that the deal aligns with IPMAN’s commitment to affordability, contrasting the association’s stance against patronizing the Port Harcourt Refinery, which offers PMS at ₦1,030 per litre.
The Dangote Refinery, valued at $20 billion, began fuel sales in September 2024, initially supplying only the NNPC. This model faced challenges, leading to demands for direct transactions by marketers. The refinery’s current capacity to produce 650,000 barrels per day positions it as a key player in addressing Nigeria’s fuel supply needs.
In the third quarter of 2024, Nigeria imported PMS worth ₦3.32 trillion and diesel valued at ₦1.33 trillion, according to the National Bureau of Statistics (NBS). During the same period, crude oil exports, valued at ₦13.40 trillion, accounted for 65.44% of total exports, with non-crude oil exports making up the remainder.
The direct access agreement with Dangote Refinery is expected to reduce operational inefficiencies, strengthen supply chains, and contribute to more stable fuel prices. Industry stakeholders view this development as a significant step toward energy self-sufficiency and economic growth in Nigeria.
