Oil Marketers Provide Update On Discussions With Dangote And Petrol Price

On Monday, PETROAN’s National President, Dr. Billy Gillis-Harry, led the association in negotiating and signing a key agreement with Dangote Refinery in Lagos, marking a significant step toward increasing interest in the refinery’s products.....KINDLY READ THE FULL STORY HERE▶

The $20 billion refinery, with a production capacity of 650,000 barrels per day (bpd), has also attracted commitments from the Major Energy Marketers Association of Nigeria (MEMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN).

However, in a phone interview with Sunday Vanguard, Dr. Gillis-Harry clarified that petroleum lifting operations would not commence immediately, as discussions on pricing, volumes, and logistics are still ongoing.

“We are finalizing the details,” he stated. “Pricing, volume, frequency, and logistics are still under negotiation.”

In agreement, Ehimen Joseph, Chairman of PETROAN’s Lagos State Chapter, stressed that financing and operational logistics are crucial to ensuring efficient distribution.

“It could cost about N42 million per truck of 33,000 litres to lift petrol. These details need to be settled as loans for operations will incur immediate interest,” he noted.

Earlier, PETROAN expressed optimism in a statement, highlighting steps being taken to guarantee a steady fuel supply during and after the festive season.

“The National Headquarters of PETROAN in Abuja is confident that efforts from our distribution technical committee, along with the start of production at the Port Harcourt Refinery and ongoing discussions with Dangote Refinery, will prevent fuel shortages,” the statement said.

Dr. Gillis-Harry also praised Mr. Devakumar V. G. Edwin, Vice President and Managing Director of Dangote Refinery, for implementing strategies to ensure nationwide accessibility to petroleum products, especially during the festive period.

The agreement between Dangote Refinery and PETROAN establishes a seller-buyer relationship, including monthly volume reservations and favorable payment terms for PETROAN members.

Although the business terms remain confidential, PETROAN assured the public that the agreement would positively impact the availability and affordability of products.

The association also reassured Nigerians, dispelling concerns over potential fuel shortages, and urged against panic buying and hoarding petroleum products.

PETROAN called on stakeholders in the downstream sector to collaborate with the Nigerian National Petroleum Corporation (NNPC) Retail Limited and Dangote Refinery to maintain a steady product supply, reaffirming their commitment to a fuel-scarcity-free festive season.

“All PETROAN retail outlets across Nigeria are on green alert to ensure uninterrupted fuel distribution,” the statement concluded.