In an exclusive interview on Channels Television, the IPMAN President, Abubakar Garima, disclosed that the deal with Dangote Refinery is aimed at reducing pump prices at retail outlets. According to him, the refinery has provided two distinct pricing models for marketers based on transportation preferences.
Dangote Refinery Pricing Structure
Garima revealed that the Dangote Petroleum Refinery, located in Lekki and valued at $20 billion, offers petrol at two different rates:
N940 per litre for bulk purchases via vessel transportation.
N990 per litre for loading directly from the refinery’s gantry using trucks.
He elaborated on the logistics, explaining that marketers who choose to transport fuel using vessels to various depots in Port Harcourt, Warri, and Calabar would benefit from the N940/litre rate due to the absence of a Dangote loading gantry in these regions. On the other hand, those opting for truck loading at the plant's gantry would purchase at N990/litre.
Garima emphasized, “Presently, we have been given two different arrangements on how to buy fuel from the refinery. There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre. The difference is because we have to load it and carry it to another part of the state.”
IPMAN's Shift Away from Petrol Importation
This agreement marks a strategic shift for IPMAN members, who may no longer need to rely on imported petrol following their direct lifting arrangement with the Dangote Refinery. This comes after months of speculation, especially after the Nigerian National Petroleum Corporation (NNPC) suspended its plans to be the sole off-taker of petroleum products from the refinery, which has a processing capacity of 650,000 barrels per day.
Impact on Fuel Prices
The new pricing models are notably lower than the previously reported rates of N960 and N990 per litre for ships and trucks, respectively. IPMAN is optimistic that this agreement will stabilize petrol prices at retail outlets, potentially making fuel more affordable for Nigerian consumers.
Garima further noted that the collaboration aims to ensure a steady and cost-effective supply of PMS, diesel (AGO), and kerosene (DPK) across the nation, thereby enhancing fuel availability and distribution.
The move is expected to bring significant relief to the Nigerian fuel market, which has been grappling with fluctuating petrol prices and supply challenges. By directly sourcing from the Dangote Refinery, IPMAN members aim to cut costs associated with importation, logistics, and middlemen, thus passing on savings to consumers.
Conclusion
The partnership between IPMAN and the Dangote Refinery is poised to transform the fuel distribution landscape in Nigeria, promising a more stable and affordable supply of petroleum products. As the agreement rolls out, consumers across the country can expect a positive impact on petrol pump prices in the coming weeks.
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