The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns that purchasing premium motor spirit (PMS), commonly known as petrol, from the Dangote Petroleum Refinery is proving to be more costly compared to other suppliers.
The national assistant secretary of IPMAN Yakubu Suleiman, made this statement during a televised interview on Friday.
Suleiman explained that due to high logistical costs associated with sourcing petrol from the Dangote refinery, IPMAN members are opting for more affordable alternatives at other depots across the country. “If Dangote has a product selling for N1,000 and there’s another place selling for N900, we can’t instruct our members to buy from Dangote just for the sake of our relationship. We must prioritize profitability,” he stated.
He pointed out that last week, Dangote’s pricing was significantly higher than competitors, with petrol priced at N995 per litre. Suleiman noted that additional costs related to cargo arrangements and transport fees further complicate the situation, making it challenging to sell the product at competitive retail prices. “We need to consider the welfare of Nigerians. IPMAN is committed to sourcing cheaper products to provide affordable fuel, especially during these tough times,” he added.
Suleiman also criticized Aliko Dangote for not engaging key stakeholders, including IPMAN, in discussions about the refinery’s fuel supply strategy. He highlighted that the lack of collaboration has limited independent marketers’ ability to procure petrol from the facility. “Dangote should call for a stakeholders’ meeting to engage with us and other associations like MOMAN and DAPMAN. He cannot operate in isolation; he needs us as significant off-takers in this industry,” he asserted.
He challenged that if Dangote were to sell directly to IPMAN at a reasonable price, fuel costs across Nigeria could drop significantly. “If we could buy directly from his refinery at N995 or N900, we would transport it straight to our filling stations. Prices would fall within days,” he stated.
Suleiman reiterated IPMAN’s willingness to support Dangote’s refinery but emphasized the need for direct engagement to secure competitive pricing. He lamented that despite several attempts to initiate discussions, there has been little response from Dangote’s team. “We have reached out three or four times, seeking a meeting to discuss collaboration, but unfortunately, we’ve received no engagement,” he explained.
On October 29, Dangote announced that the refinery currently holds over 500 million litres of petrol, yet oil marketers have not been purchasing the product. In a recent development, IPMAN claimed that its members had faced difficulties loading petrol from the Dangote refinery for several days, citing a N40 billion payment made to the Nigerian National Petroleum Company (NNPC) Limited. However, the Dangote refinery countered that it has not received any payments from IPMAN for refined petroleum products.
