The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have expressed strong interest in purchasing refined petroleum products directly from the Dangote Petroleum Refinery. This initiative follows recent remarks by Dangote Group's President, Aliko Dangote, highlighting the refinery's substantial reserves of Premium Motor Spirit (PMS) and the absence of marketers to distribute them.

IPMAN's Engagement with Dangote Refinery

IPMAN has proactively reached out to the Dangote Refinery, signaling readiness to procure PMS, diesel, and kerosene directly. An agreement was reached in November 2024, aiming to streamline the supply chain and potentially reduce fuel prices by eliminating intermediaries. This move is anticipated to enhance fuel availability across Nigeria, including regions like Abuja, which have experienced fuel queues following price adjustments by the Nigerian National Petroleum Company Limited (NNPCL). citeturn0search1turn0search8

PETROAN's Direct Purchase Agreement

Similarly, PETROAN finalized a direct purchase agreement with the Dangote Refinery in December 2024. The association believes this collaboration will ensure a consistent fuel supply and mitigate scarcity, especially during peak travel periods. While specific terms remain confidential, PETROAN emphasizes that the agreement is structured to benefit consumers nationwide. citeturn0search3

Clarifications from Dangote Refinery

Despite these developments, the Dangote Refinery has clarified that, as of late 2024, it had not received direct payments from IPMAN for product purchases. The refinery stated that any payments made by IPMAN were routed through NNPCL, which had not authorized the release of products to IPMAN at that time. Ongoing discussions aim to establish direct business dealings between the refinery and IPMAN. citeturn0search7turn0search4

Implications for Fuel Distribution

These strategic partnerships between the Dangote Refinery and major petroleum marketers like IPMAN and PETROAN are poised to transform Nigeria's fuel distribution landscape. By facilitating direct access to locally refined products, these agreements are expected to enhance supply efficiency, reduce costs, and improve fuel availability across the country.

As these collaborations progress, they hold the promise of stabilizing fuel prices and ensuring a more reliable supply chain, benefiting consumers and the broader Nigerian economy.