(3 Minutes Read)
The Dangote refinery has agreed to supply 60 million litres of Premium Motor Spirits, commonly known as Petrol per week to the oil marketers in Nigeria. Deal with The Independent Petroleum Marketers Association of Nigeria (IPMAN) cuts away the middleman, allowing marketers to lift petrol directly from the refinery. As per the deal Dangote to supply 240 million litres of petrol each month.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently inked a deal that cuts away the middleman, allowing marketers to lift petrol directly from the refinery. The deal, which is still being negotiated, will be implemented as soon as both parties reach a consensus. The National Publicity Secretary, however, believes that this will be done before the end of the month.
IPMAN is going to off-take the product in millions of litres. Before now, most of the imported products in Nigeria were distributed through the association. Just the announcement that IPMAN and Dangote have met and are ready to transact business has crashed product prices. The drop in prices by N10, N15, or so, and this is due to competition, Ukadike stated.
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Nigeria in October saw an increase in fuel importation despite a functioning refinery “Independent marketers are no longer buying from middlemen. We are going to be buying directly from the producer. So, the competition is setting in. I also want to tell you that before the end of this year, the price will not be as high as what you see now.
