Independent Marketers Begin Lifting Petrol Directly from Dangote Refinery
Independent petroleum marketers in Nigeria have begun lifting Premium Motor Spirit (PMS) directly from the Dangote Petroleum Refinery, marking a pivotal shift in the nation’s fuel supply chain. The move follows a historic agreement reached last month between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the refinery.
The National Publicity Secretary of IPMAN, Chinedu Ukadike, confirmed in an interview that the lifting of petrol from the $20 billion refinery, located in the Lekki Free Trade Zone, commenced in late November. According to Ukadike, the process initially involved loading products through MRS Oil, a transitional measure while final documentation was being prepared.
“There is a pre-arrangement we had. Our experts are putting things together for our documentation,” Ukadike said. “We are buying Dangote products through MRS to bridge the gap. This is not about middlemen; it’s about creating a seamless supply chain.”
Price Drop Spurs Demand
Ukadike revealed that Dangote’s decision to reduce the price of PMS from ₦990 to ₦970 per litre has increased market demand and bolstered the local economy.
“The reduction in Dangote’s PMS price has significantly boosted demand and strengthened the economy,” he stated. “By eradicating middlemen and profiteering, we’ve created direct access to products. Once you pay, you can access Dangote’s fuel immediately.”
The agreement between IPMAN and the refinery is seen as a critical step toward stabilising Nigeria’s volatile fuel market, which has long been plagued by inefficiencies and high costs.
Policy Shift Fuels Change
The landmark deal comes after months of advocacy by independent marketers for direct access to the refinery. Initially, the Dangote Refinery sold PMS exclusively to the Nigerian National Petroleum Company Limited (NNPC), which acted as a middleman. However, inefficiencies in the supply chain led to widespread dissatisfaction.
In response, the Federal Government revised its policy in October, allowing marketers to bypass the NNPC and purchase fuel directly from local refineries. This policy shift, championed by the Minister of Finance, Wale Edun, aims to promote competition and improve market efficiency.
“Petroleum product marketers are now able to purchase PMS directly from local refineries on mutually negotiated terms,” Edun announced. “This will foster competition and drive market efficiency.”
A New Era for Nigeria’s Fuel Sector
The direct purchase agreement with Dangote represents a significant win for IPMAN. National President Abubakar Maigandi highlighted the scope of the deal, which includes the supply of PMS, AGO (diesel), and DPK (kerosene) to IPMAN’s depots and retail outlets.
“After meeting with Aliko Dangote and his management team, we are pleased to announce this milestone agreement,” Maigandi said.
The development has also influenced broader market dynamics. IPMAN has openly criticised the high pricing of PMS from the refurbished Port Harcourt refinery, refusing to patronise it unless prices become competitive.
“If the Port Harcourt refinery’s PMS price is truly ₦1,030 per litre, it is unacceptable to us,” Ukadike said. “We will buy where it is cheap.”
This shift signals a new era for Nigeria’s fuel sector, with independent marketers now poised to play a more prominent role in ensuring stable and affordable energy access for millions of Nigerians.
