Dangote Refinery to Supply 60 Million Litres of Petrol Weekly in Landmark Deal with IPMAN
By Rita Uzuh
November 18, 2024
The Dangote Petroleum Refinery has signed a significant new agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) to provide 60 million litres of Premium Motor Spirit (PMS), also known as petrol, every week. This large-scale supply deal aims to ease fuel distribution challenges across Nigeria and enhance the availability of petrol nationwide.
Under this agreement, IPMAN will receive approximately 240 million litres of petrol per month, a volume that could notably strengthen the association’s capacity to meet local fuel demand. Chinedu Ukadike, IPMAN’s National Publicity Secretary, stated that this arrangement enables members to access fuel directly from the Dangote refinery, eliminating reliance on middlemen and potentially reducing costs.
“We are positioned to off-take large volumes of petrol directly from the Dangote refinery. Prior to this, much of Nigeria’s imported fuel was channeled through IPMAN,” Ukadike shared in an interview with The PUNCH. “Now, with Dangote offering us over 60 million litres weekly, we have the flexibility to meet demand as it fluctuates.”
This partnership signals a strengthened collaboration between Dangote’s refinery and independent marketers in Nigeria, many of whom play vital roles in the distribution network. The Dangote refinery, the largest in the country, is expected to lessen Nigeria’s dependence on imported fuel, which has been a costly and persistent issue for the nation.
Ukadike explained that while the deal guarantees 60 million litres weekly, the actual volume lifted will depend on IPMAN’s distribution capacity. “We are prepared to distribute the petrol across the country as soon as the initial lifting begins from the refinery,” he added, anticipating that the operations will commence by late November, pending the finalization of all documentation.
This agreement marks a promising step toward achieving self-sufficiency in fuel production and distribution in Nigeria, potentially stabilizing the local market and providing a reliable source of fuel for millions of Nigerians.
