Dangote refinery: Marketers plan direct petrol purchase

Oil marketers are seeking to deal directly with the Dangote Petroleum Refinery instead of buying the company’s Premium Motor Spirit, popularly called petrol, from the Nigerian National Petroleum Company Limited.

Dealers under the aegis of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria said they had commenced moves that would ensure the direct purchase of petrol from the $20bn plant instead of going through NNPC.

NNPC is currently the sole off-taker of PMS from Lekki-based refinery. Other marketers go through the national oil company to access the product from the mega refinery.

This came as the Nigerian Economic Summit Group urged the Federal Government to avoid long-term monopoly in the downstream oil sector, but should support the Dangote refinery for growth.

IPMAN officials described NNPC as a fellow competitor, stating that efforts were ongoing to meet with the President of Dangote Group, Alhaji Aliko Dangote, or some management members of the industry.

While saying no particular date has been fixed for the meeting, IPMAN leaders emphasised that buying directly from the refinery is right instead of buying from another marketer.

The Secretary of the group, Terlumun James, told our correspondent on Wednesday that IPMAN as an association of businessmen would not love to broadcast its business discussion, saying, however, that when a final business decision is taken, everyone would be carried along.

“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,” James replied when our correspondent sought to know IPMAN’s level of engagement with Dangote to get PMS.

However, when he was told that Nigerians would be interested in IPMAN because it has the highest number of filling stations in the country, the secretary admitted, saying the association is mindful of this.

“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,” he said.

James spoke further on doing business with the state-owned petroleum company, saying, “NNPC is a registered company now, they are into the business with us. As far as IPMAN is concerned, NNPC is a competitor. IPMAN is being focused. Thank God you know we are planning to have a meeting with Dangote, it’s part of those things.”

Asked if the association wants to buy fuel directly from the Dangote refinery instead of waiting for the NNPC, he retorted, “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. The leadership of IPMAN is trying to ensure that our members have products because if they have, the masses will have peace of mind as they will have products to buy.”

The IPMAN leader spoke further, “They (Dangote officials) should deal with us, we are proudly in the market, we have the stations, and nobody has the number of stations that we command. If somebody has something, can’t you deal directly with the person? You deal with the person that has this thing. Some people who said they are selling, where are their stations? IPMAN owns the majority of the filling stations.”

Similarly, the spokesman of IPMAN, Ukadike Chinedu, hinted that as marketers, it is important for IPMAN to meet with Dangote as the source of PMS in Nigeria.