The Dangote Petroleum Refinery is set to become a major supplier to about 150,000 retail outlets operated by the Independent Petroleum Marketers Association of Nigeria (IPMAN). Following a successful meeting between the management of the refinery and IPMAN executives, an agreement has been reached for the Dangote Refinery to supply petroleum products to the extensive network of IPMAN members.
IPMAN President Abubakar Maigandi announced that the association had indeed met with the refinery’s management, and they have agreed to supply products to over 30,000 IPMAN members.
This development aligns with the recent registration of seven major oil marketers with the Dangote Refinery for the lifting and distribution of refined petroleum products. These major marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail, are gearing up to commence the distribution of fuel produced by the $20 billion Dangote Refinery.
The collaboration is seen as a significant step in addressing the fuel supply chain, potentially alleviating scarcity issues. IPMAN’s Maigandi expressed optimism about the refinery’s production, emphasizing the readiness of IPMAN members to purchase and distribute fuel across the 150,000 retail outlets nationwide.
While discussions reportedly did not cover pricing details, Maigandi mentioned that the price is expected to be slightly lower than current rates. The Dangote Refinery, located in Lagos, has already commenced production, specifically in Automotive Gas Oil (diesel) and JetA1 (aviation fuel).
Despite these positive developments, regulatory approvals are pending before the Dangote Refinery can release its products into the market. Officials from the Federal Ministry of Petroleum Resources have been conducting examinations and processes required for regulatory approvals. The President of Dangote Group, Aliko Dangote, has assured that products will be released once regulatory approvals are obtained. The refinery, with a capacity to refine 650,000 barrels of crude oil per day, is positioned as a key player in Nigeria’s energy landscape.
