The members of Independent Petroleum Marketers Association of Nigeria, IPMAN, yesterday expressed optimism that loading products from the Port Harcourt refinery will commence this week.
This was even as Dangote Petroleum Refinery and the Petroleum Products Retail Outlets Owners’ Association, PETROAN, have continued talks, targeted at concluding details for lifting petroleum products.
The NNPC Limited owned 60,000 barrels per day refinery which commenced operations last week is said to be refining at 70 percent capacity.
Speaking to Vanguard, the Public Relations Officer, IPMAN, Chief Chinedu Ukadike, said the refinery currently supplies only NNPC retail and a few marketers.
Ukadike explained that with the expected increase in the supply of petroleum products from the refinery, independent marketers were expected to load products from the facility.
He also disclosed that marketers were now lifting directly from Dangote Refinery after the deal reached with the management and the decision of the refinery to reduce the minimum bulk purchase for marketers to two million litres for petrol.
“Our members are buying products from Dangote Refinery because Dangote has finally reduced the minimum quantity of bulk purchase to two million litres. So most of our members are now able to access it”
Ukadike pointed out that getting access to load directly from the refineries has made the market more competitive as independent marketers are now able to compete with other major marketers.
Petroleum products distribution has been smooth and there are no queues but what you will see is a bit of price differentials. This is the beauty of deregulation. Not only that but with the coming onstream of Port Harcourt Refinery there is also less pressure on Dangote products.
“Although most marketers have not started accessing products from Port Harcourt refinery hopefully by next week (this week), according to an official of NNPC, they will have enough to accommodate independent marketers”.
He stressed that competition in the market has just begun, adding that with the reduction in the exchange rate of the Naira to the dollar, pump prices would also likely drop in the coming weeks
Meanwhile, Dangote Petroleum Refinery and the Petroleum Products Retail Outlets Owners’ Association, PETROAN, have continued talks, targeted at concluding details for lifting petroleum products.
Dr. Billy Gillis-Harry, the National President of PETROAN,Monday, led the association to negotiate and sign a deal with Dangote refinery in Lagos.
This shows an increased interest in the products of the $20 billion refinery as members of the Major Energy Marketers Association of Nigeria, MEMAN, and Independent Petroleum Marketers Association of Nigeria, IPMAN, have also expressed commitment to patronize the 650,000 barrels per day, bpd facility.
Dr. Gillis-Harry, said lifting would not start immediately as discussions were ongoing to conclude pricing, volume and logistics.
He said: “We are working out details. Pricing, volume, frequency and logistics are still being discussed.”
Also, the Chairman of the Lagos State Chapter of the association, Ehimen Joseph, said: “Lifting of petroleum products comes with some challenges, including financing, operations, logistics are key success factors for the seamless delivery/lifting of petroleum products in the refinery.
“It would likely cost about N42 million per truck of 33,000 litres to lift petrol. The details should be worked out because if we take a loan to fund our operations, the interest will start to count immediately.”
The association disclosed earlier in a statement that “The National Headquarters of PETROAN Abuja, has expressed confidence that the measures put in place by the Association following the commencement of production at the Port Harcourt refinery and fruitful deliberations with the management of Dangote Refinery will avert fuel supply shortages during and after the festive season.
This was due to the efforts of the PETROAN distribution technical committee in charge of planning and execution of the zero-fuel scarcity strategy. We are happy that Nigerians are going to travel effortlessly during this period of the year.
“The National President of PETROAN, Dr Billy Gillis Hary, on Monday, December 2, 2024, led the negotiation team of PETROAN to a fruitful strategic business meeting with the management of Dangote Refinery at the complex in Lagos.
“The Sealing of a transactional deal with Dangote Refinery was the aftermath of successful buyer-seller negotiation and agreement secured by PETROAN at the strategic meeting.”
PETROAN National President commended the Vice President of Dangote Group & Managing Director of Dangote Refinery, Mr. Devakumar V. G. Edwin, for his cooperation and strategies deployed so far to make petroleum products available to all Nigerians throughout the end-of-year festivities and beyond.
“PETROAN is impressed with the outcome of the strategic business meeting which was evidenced by the establishment of a Seller/Buyer relationship, reservation of monthly volume for PETROAN, payment modalities and a favourable rate.
“We reserved the right not to make public the business terms and conditions, even as we express optimism that the greatest beneficiaries in all shall be the general public as it concerns product availability and affordability.
“PETROAN dismisses any form of fuel scarcity concerns, caution against panic buying as it is unsafe and dangerous to stock Petroleum products at home.
“PETROAN also calls on stakeholders in the downstream sector to support the Management of NNPC Retail Ltd and Dangote Refinery to sustain petroleum products supply.
“We hereby reassure Nigerians of PETROAN’s preparedness to ensure zero-scarcity of petroleum products during the upcoming festive season and beyond as all our retail outlets operators in all the states in Nigeria have been placed on green alert.”
