About 150,000 fuel stations run by the Independent Petroleum Marketers Association of Nigeria (IPMAN) have been sanctioned to receive fuel supplies from the newly built private Dangote refinery.
This was disclosed after a meeting between the officials from the Dangote refinery and executives of IPMAN. Fuel cost after the supply still remains unknown as there has been no full disclosure on the subject.
A report from the Punch Newspaper disclosed that executives from the Independent Petroleum Marketers Association of Nigeria had reached an agreement with the Dangote team to allow the supply of refined petroleum products to at least 150,000 retail outlets operated by the association.
Abubakar Maigandi, the President of the association relayed to the publication that IPMAN had finally sat down with the management of the Dangote refinery, which led to an agreement on the refinery supplying products to the over 30,000 members of IPMAN.
“The meeting went well, so right now we are just expecting their reply in terms of products that they are going to give us. They have agreed to dispense products to IPMAN members,” Maigandi stated.
We have 30,000 members as of our last census, which was done two years ago. And they agreed to supply products to us. Also, our retail outlets are 150,000 stations across the country,” Maigandi added.
“No we didn’t discuss the price, but all that we know is that the price is going to be a little bit lower than what we have been selling,” the president of IPMAN said when asked by the Punch NG what the plan for fuel pricing was.
Additionally, IPMAN is currently in the process of of examining the quality of the product from the refinery, before it can give the go-ahead to receive supply from the refinery.
As seen in Punch’s report, seven major Nigerian oil marketers including, 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail, have registered with the refinery to lift and distribute refined petroleum products from the Dangote plant.
The $20.5 billion Dangote refinery, Africa’s largest, has a processing capacity of 650,000 barrels per day. It aims to produce 250,000 barrels per day of gasoline and 100,000 barrels per day of gasoline and diesel. These outputs could contribute to fuel self-sufficiency and reduce the $26 billion spent on petroleum imports in 2022.
With a capacity to generate 27 million litres of diesel, the Dangote refinery is set to also supply 11 million litres of kerosene, and 9 million litres of jet fuel, sourcing crude from various producers in Nigeria, including the Nigerian National Petroleum Corporation (NNPC).
