Petroleum marketers across Nigeria have begun registering with the Dangote Petroleum Refinery to secure direct supplies of Premium Motor Spirit (PMS), commonly known as petrol, marking a significant shift in the country’s fuel distribution landscape.
The move follows the Federal Government’s decision to allow marketers to bypass the Nigerian National Petroleum Company Limited (NNPCL) as the sole off-taker of Dangote’s refined products, a development aimed at reducing reliance on imported fuel and stabilizing supply chains.
The registration process, confirmed by sources within the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN), enables marketers to load petrol directly from the 650,000 barrels-per-day refinery in Ibeju-Lekki, Lagos.
According to IPMAN’s National Vice President, Hammed Fashola, marketers are registering as individual business owners to access direct supplies, with negotiations ongoing to secure bulk allocations for smaller members unable to afford large volumes.
“We are eager to start lifting products directly from Dangote. This could end petrol scarcity and importation,” Fashola told The Nation, noting that IPMAN plans to meet with refinery management this week to finalize pricing and terms.
The Dangote Refinery, which began petrol production in June 2024, has already disrupted the market by crashing diesel prices from ₦1,700 to ₦1,200 per liter.
Aliko Dangote, President of the Dangote Group, recently announced a festive season “bonanza,” reducing petrol prices from ₦970 to ₦899.5 per liter for marketers, with retail outlets expected to sell at ₦935 per liter.
This initiative, supported by a fleet of 4,000 CNG-powered tankers and over 100 CNG stations, aims to eliminate logistics costs and enhance fuel accessibility nationwide.
Major marketers, including MRS Oil, Ardova Plc, and Heyden Petroleum, have secured bulk purchase agreements with the refinery, ensuring a steady supply to their over 1,000 retail outlets.
MOMAN’s Executive Secretary, Clement Isong, confirmed that all members have registered to lift products, with commercial terms being finalized. “As soon as Dangote is ready, you’ll see our stations stocked with their fuel,” Isong said.
However, the shift has sparked concerns among some marketers, who warn that bypassing traditional distribution channels could disrupt supply networks and threaten smaller players.
The Federal Government’s “Naira-for-Crude” scheme, which allows Dangote to purchase crude in naira, has bolstered the refinery’s operations, stabilizing supply amid global price volatility.
The initiative aligns with President Tinubu’s Renewed Hope Agenda, aiming to reduce fuel costs, curb inflation, and drive economic growth.
Dangote’s direct sales are expected to create jobs, revive inactive petrol stations, and boost investor confidence in Nigeria’s downstream sector.
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