IPMAN and Dangote Finalize Agreement for Direct Fuel Lifting: Boosting Petrol and Diesel Supply Nationwide

The Independent Petroleum Marketers Association of Nigeria (IPMAN) partners with Dangote for direct lifting of petrol and diesel, aiming to streamline supply across Nigeria.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with Dangote Refinery for the direct lifting of petroleum products. This announcement was made by IPMAN National President, Abubakar Garima, in Abuja on Monday following a meeting of the Association’s National Working Committee.

Garima stated that this collaboration will facilitate a consistent and affordable supply of Premium Motor Spirit (PMS) products across the country. After discussions with Aliko Dangote and his management team in Lagos, he confirmed, “We are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) directly for distribution to our depots and retail outlets.”

He encouraged IPMAN members to support Dangote Refinery, highlighting the advantages of backward integration and its positive effects on Nigeria’s foreign exchange market. Regarding pricing, Garima expressed optimism that negotiations with Dangote would result in more favorable rates.

Concerning Compressed Natural Gas (CNG), the IPMAN President indicated that the Association is preparing for a smooth transition to CNG refill stations nationwide, as it is currently in discussions with the presidential CNG initiative. This partnership is anticipated to enhance efficiency, affordability, and economic growth within Nigeria’s petroleum sector.

During the meeting, Dangote Refinery committed to supplying products to over 30,000 IPMAN members and 150,000 retail outlets nationwide. This initiative is expected to eliminate intermediaries, lower costs, and ensure a reliable supply.

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Previously, IPMAN had voiced its concerns regarding the challenges marketers faced in lifting products from the Dangote Refinery. The Association lamented that its members were unable to load petrol from the Dangote Refinery in Lagos, despite having made a payment of ₦40 billion to the Nigerian National Petroleum Company Limited (NNPCL).

Dangote Refinery has denied the assertions made by IPMAN, stating that it has not received any payments from IPMAN for the acquisition of refined petroleum products.

The refinery clarified that while discussions with IPMAN are ongoing, it is inaccurate to claim that IPMAN members are facing challenges in loading refined products from their facility, as there are currently no direct business transactions between the two parties.

As a result, the company indicated that it cannot be held accountable for any payments made to other organizations, as the payment in question was processed through NNPCL, rather than Dangote Refinery itself.

Furthermore, it noted that NNPCL has neither granted approval nor authorized the release of Premium Motor Spirit (PMS) to IPMAN.

In reiterating its capability to satisfy Nigeria’s demand for all petroleum products, Dangote Refinery encouraged IPMAN to establish direct registration with the company and to make payments for the petroleum products accordingly.