Latest Agreement Between IPMAN and Dangote on Fuel Prices Explained
The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, has reassured Nigerians that negotiations for a direct petrol supply from Dangote Refinery, which has a capacity of 650,000 barrels per day, are going well and should wrap up soon.
Maigandi confirmed that talks with Dangote Refinery are in progress, and he feels optimistic that an agreement will be reached shortly. During a recent event in Abuja, where he introduced a task force to combat oil theft and other illegal activities, he mentioned that IPMAN has settled its pricing issues with the Nigerian National Petroleum Company Limited (NNPCL) and is now focusing on partnering with Dangote.
He stated, “We are excited to share that we are nearing the completion of arrangements to source petrol directly from Dangote Refinery. We have received our funds back from NNPCL, and we are negotiating with Dangote and other partners to start direct sourcing.”
These discussions with Dangote Refinery began after the Director-General of the Department of State Services (DSS) got involved. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been directed to provide IPMAN with the necessary licenses for importing and off-taking petrol.
Oil marketers have been pushing for direct loading from the Dangote refinery since the government fully deregulated the petroleum sector. However, there are concerns about whether the refinery can meet local demand, which may require supplementing with imported petrol.
Reports indicate that a meeting earlier this week between oil marketers and Dangote officials did not lead to a final agreement. Another meeting with IPMAN representatives is scheduled for Thursday in Lagos to continue the discussions.
Maigandi also emphasized IPMAN’s commitment to assisting the government in fighting against those who sabotage the economy. He described the new task force as an essential step to address economic sabotage related to oil, which worsens the country’s economic issues.
“Our association is vital in the downstream oil sector, responsible for over 80% of the distribution chain. We must confront economic sabotage directly. This task force, comprised of members from all 36 states, will help dispel the negative perception that some of our members engage in illegal activities. We are determined to hold those responsible accountable,” Maigandi stated.
