Petrol marketers
Over 30,000 members of the Independent Petroleum Marketers Association of Nigeria are expected to purchase large quantities of petrol, from the Dangote Petroleum Refinery.
Additionally, IPMAN disclosed that the cost of gasoline from the $20 billion facility located in Lekki was N940 per litre for ships and N990 per litre for trucks.
IPMAN President Abubakar Garima stated on Channels Television on Tuesday that the agreement with the Dangote refinery to import goods straight from the plant will result in lower petrol pump pricing at its retail locations.
The Dangote refinery and IPMAN reached an agreement on Monday to directly lift petrol, diesel and other petroleum products.
The Nigerian National Petroleum Corporation halted its ambition to be the exclusive off-taker of petroleum products from the refinery, which produces 650,000 barrels per day, months prior to this arrangement.
Without disclosing the cost, the IPMAN president clarified that the Dangote refinery was required to permit marketers to lift PMS, AGO, and DPK directly for subsequent delivery to their depots and retail locations.
During the interview, the IPMAN national officer presented an update on pricing, stating that the Refinery has offered marketers two different rates depending on their preferences.
According to him, marketers might pay N990 per litre or N940 via vessel transportation to load at the gantry.
“Presently, we have been given two different arrangments on how to buy fuel from the refinery. There is the one that we can load the vessels and carry to our various depots at the rate of N940 per litre. Then for the depots, it is at the rate of N990 per litre.
“The difference is because we have to load it and carry it to another part of the state. We use vessels to carry these products and there is another one to load from the gantry.
“For Port Harcourt, Warri, Calabar, we have to use vessels because there is no Dangote loading gantry there, we have to carry it to our private depot and discharge and distribute it to our members,” Garima stated.
According to Garima, the partnership intends to guarantee a steady and reasonably priced supply of Premium Motor Spirit and other goods across the country.
He further predicted that, depending on where you buy it, the price of petrol would drop by N50 or more.
Garima clarified that direct purchases from the refinery, which produces 650,000 barrels per day, will do away with the need to pay middlemen like depot owners and the Nigerian National Petroleum Company.
He claims that within the next several weeks, the price of petrol will reflect these cost savings.
“We have the overall market in the country. We go everywhere in the country. The implication goes beyond the issue of price, but still, price is the main target.
“The masses are looking for how we, Independent Petroleum Marketers, can reduce price for them. So the price too will reduce because we are not buying through the third party.
“So the profit that we have been giving to the third party like NNPC and depot owners will be reduced. That is the issue.
“For instance, the current price in Maiduguri now is N1,200 per litre. So with these current changes, it may likely reduce to N1,150, which there is a reduction of N50. So that’s N1,150. It may even be below that.
“And as we continue, you know, this thing, since it’s deregulation. Yes. As we continue. It can go down. It can go down continuously because, provided that the product is available, you may find that the market will come a little bit low, and then the naira will start appreciating. And then if the crude oil price is reduced, automatically, the same thing will be reduced,” he stated.
