IPMAN, Dangote Reach Deal for Direct Lifting of Petrol, Diesel

The refinery reassured the public of its capacity to meet Nigeria’s demand for petroleum products and highlighted the need for IPMAN to formalize direct business arrangements to facilitate product lifting.

Abuja – The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a groundbreaking agreement with Dangote Refinery to directly lift petroleum products, a move expected to enhance efficiency, affordability, and economic stability in Nigeria’s oil and gas sector.

IPMAN’s National President, Abubakar Garima, revealed the agreement during a meeting of the Association’s National Working Committee held in Abuja on Monday. He noted that the collaboration would ensure a consistent and affordable supply of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) across the country.

Following consultations with Dangote Refinery’s management in Lagos, Garima stated, “We’re pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets.” He called on members to support the initiative, emphasizing the potential benefits of backward integration and the positive impact on Nigeria’s foreign exchange market.

Garima also expressed optimism that ongoing pricing negotiations with Dangote would yield reduced rates for petroleum products. Furthermore, he disclosed the union’s plans for the transition to Compressed Natural Gas (CNG), revealing active negotiations with the Presidential CNG Initiative to ensure a seamless rollout of CNG refill stations nationwide.

In response, Dangote Refinery has committed to supplying over 30,000 IPMAN members and 150,000 retail outlets nationwide. This arrangement aims to eliminate intermediaries, cut costs, and guarantee a steady supply of fuel products.

However, the partnership follows a period of tension, as IPMAN had previously expressed frustration over difficulties in lifting products from Dangote Refinery despite reportedly making a ₦40 billion payment to the Nigerian National Petroleum Company Limited (NNPCL). The union claimed its members were unable to load petrol from the refinery in Lagos despite these payments.

Dangote Refinery has since refuted these claims, clarifying that it has not received any payments from IPMAN for refined petroleum products. In a statement, the refinery emphasized that ongoing discussions with IPMAN had not yet resulted in direct business transactions. “It is misleading to suggest that they are experiencing difficulties loading refined products from our refinery, as we currently have no direct business dealings with them,” the company stated.

Dangote Refinery further explained that the payments in question were made to NNPCL, not to Dangote, and that it has not been authorized by NNPCL to release PMS to IPMAN. The refinery urged union members to formally register and make direct payments to initiate business transactions.