Dangote And IPMAN Team Up To Deliver 60 Million Litres Of Petrol Weekly

Dangote And IPMAN Team Up To Deliver 60 Million Litres Of Petrol WeeklyThe Dangote Petroleum Refinery has signed a significant agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to supply 60 million litres of Premium Motor Spirit (PMS), or petrol, on a weekly basis. This arrangement translates to a total of 240 million litres per month.....KINDLY READ THE FULL STORY HERE▶

IPMAN has indicated that the supply volume will be determined by the association’s demand and purchasing power. The $20 billion refinery, located in Lekki, Lagos, is also in the process of raising additional funds to support its crude oil imports and expand production capacity.

In recent developments, fuel prices have started to decline, a trend attributed to the increased competition following the deregulation of the oil sector. The Nigerian National Petroleum Corporation Limited (NNPCL) and other oil marketers have also imported over two billion litres of PMS within a 42-day period, contributing to the downward pressure on prices.

Chinedu Ukadike, the National Publicity Secretary of IPMAN, confirmed to The PUNCH that IPMAN members will be able to lift significant quantities of PMS directly from the Dangote Refinery, bypassing middlemen. Historically, IPMAN has been responsible for distributing a large portion of the imported fuel in Nigeria.

“We are set to off-take millions of litres. Previously, most of the imported fuel was distributed through IPMAN, and we are now in a position to off-take substantial quantities,” Ukadike said. He further explained that the arrangement would allow IPMAN members to lift a minimum of 10 million litres weekly, with Dangote offering up to 60 million litres, depending on demand.

The distribution of petrol under this agreement is expected to begin before the end of November. Ukadike noted that discussions with Dangote Refinery are near completion, with final documentation in progress. “Once everything is finalized, we will start lifting products from the refinery,” he confirmed.

To facilitate efficient distribution, IPMAN has set up a Special Purpose Vehicle (SPV) designed to streamline product off-take. This initiative aims to ensure more effective nationwide distribution by eliminating past issues where individual marketers faced challenges with delayed deliveries and tied-up funds.

“The old system where some dealers would buy limited quantities and lock up our funds is now behind us,” Ukadike explained. “With the SPV, we will now be able to guarantee the money and ensure a more efficient distribution value chain.”

This partnership between Dangote Refinery and IPMAN is expected to significantly improve fuel availability and distribution across Nigeria, reinforcing IPMAN’s key role in the downstream sector and contributing to the broader goal of stabilizing the country’s fuel supply network.

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