Oil marketers in Nigeria are taking steps to secure direct deals with the Dangote Petroleum Refinery for the purchase of Premium Motor Spirit (PMS), commonly known as petrol, instead of buying through the Nigerian National Petroleum Company Limited (NNPC).
Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have confirmed they are working towards purchasing petrol directly from the $20 billion refinery, bypassing NNPC.
Currently, the NNPC remains the sole off-taker of PMS from the Lekki-based refinery, which means that other marketers must go through the state oil company to access the product. This move by the marketers could potentially change that dynamic.
In a related development, the Nigerian Economic Summit Group (NESG) has urged the Federal Government to prevent long-term monopoly in the downstream oil sector. They called for a balanced approach that would encourage the growth of the Dangote refinery without fostering monopolistic control.
IPMAN officials pointed out that NNPC is now a direct competitor. Efforts to meet with Dangote Group President Aliko Dangote or his management team are already in motion, though no specific date for a meeting has been set.
IPMAN’s Secretary, Terlumun James, told reporters that the association, being a business-oriented body, is not eager to publicize its discussions until decisions are finalized. “If IPMAN is trying to meet with Dangote, we may not tell the press. We can call the press the moment we get something from Dangote reasonably. We are very serious businessmen; we are not politicians. Give us some little time, let us tidy up the business we are doing,” he said.
James also acknowledged the importance of the association’s large network of filling stations and the public’s interest in their operations. He added, “We are mindful of that because, for the past years, we’ve been in crisis, and that has affected our business. So, we are just coming up and we decided to move forward, and we are planning.”
Regarding NNPC’s role, he noted, “NNPC is a registered company now, they are into the business with us. As far as IPMAN is concerned, NNPC is a competitor.”
On whether IPMAN prefers to deal directly with Dangote, James remarked, “NNPC is a marketer, they have a way they do their things and IPMAN has its way. We are very focused and organised now and we are trying to see how we can make products available to members of the public.”
IPMAN spokesperson, Ukadike Chinedu, also highlighted the importance of engaging with Dangote as a source of PMS. “It is right that we meet with Dangote to discuss the interest and welfare of our marketers,” Chinedu said, while emphasizing the need for a willing-buyer, willing-seller relationship in the deregulated market.
Chinedu noted that even if Dangote refuses to sell directly to IPMAN, the association would continue sourcing PMS from other suppliers, including NNPC.
Billy Gillis-Harry, President of PETROAN, added that direct dealings with Dangote refinery would promote healthy competition in the downstream sector. “Accessing the product from them will deepen the competition in the space, and healthy competition is good for the downstream sector,” he said.
Meanwhile, members of the Major Energy Marketers Association of Nigeria (MEMAN) remain the only ones currently lifting PMS from the Dangote refinery. Over 50 million litres of petrol have been lifted since sales commenced on September 15.
MEMAN Chairman Huub Stokman confirmed that major marketers had begun loading PMS from the 650,000-barrel-per-day refinery, though he declined to comment on pricing or whether the product was purchased directly from Dangote or via NNPC. “I can tell you that we have started loading PMS from Dangote refinery. Our members have lifted millions of litres from Dangote,” Stokman stated.
