Dangote To Meet Marketers On Tuesday To Discuss Fuel Price

Business/Economy

Dangote To Meet Marketers On Tuesday To Discuss Fuel Price

Reported by Ibadan Media

The Independent Petroleum Marketers Association of Nigeria (IPMAN) is set to engage in discussions with Dangote Petroleum Refinery on Tuesday and Wednesday to finalize agreements concerning petrol pricing and lifting from the facility.

Recently, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) was asked by the $20 billion refinery, located in Lekki, to resend its request for petrol lifting.

PETROAN has expressed optimism that petrol prices may decline soon as competition increases in the downstream oil sector with marketers sourcing from the refinery.

IPMAN views the forthcoming agreement with Dangote as a vital move in its efforts to streamline the petroleum product supply chain and enhance stability.

Last week, the Federal Government authorized petroleum marketers to purchase petrol directly from Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). Finance Minister Wale Edun stated that this change promotes competition and market efficiency.

Chinedu Ukadike, IPMAN\'s National Publicity Secretary, noted that the association is eager to establish a business relationship with Dangote. He indicated that IPMAN has secured tank farms to improve storage capabilities, overcoming previous operational challenges.

Ukadike emphasized the association\'s readiness to engage with Dangote: “If they provide us with a pricing template, we are prepared to commence operations immediately. We are equipped to take on whatever Dangote offers. Any delays may be political.”

He also stated that increased competition would likely lead to lower prices, as marketers aim for minimal profits in a more abundant supply scenario.

PETROAN president, Gillis-Harry, mentioned that they are awaiting confirmation of the meeting with Dangote but have been encouraged by previous communications. He anticipates that members will soon begin lifting products from the refinery, which he believes is positive for the market.

Regarding future petrol prices, Gillis-Harry noted that prices could potentially drop to N700 per litre, depending on market dynamics.

Ukadike further explained that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has granted independent marketers a bulk purchase license to facilitate direct procurement from Dangote. He underscored the need for equitable competition and criticized previous pricing practices that favored NNPC.

He also addressed the debts owed to oil dealers by NNPC, mentioning that efforts are underway to resolve these issues and alleviate financial burdens on marketers.

Lastly, IPMAN is seeking government support to create an energy bank to assist marketers with financing, given the high interest rates affecting operational costs. The association is also collaborating with security agencies to prevent theft and ensure the integrity of fuel supplies.