The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently inked a deal with Dangote to supply 240 million liters of petrol each month.
Chinedu Ukadike, IPMAN’s National Publicity Secretary, re-iterated the fact that such a deal cuts away the middleman, allowing marketers to lift petrol directly from the refinery.
The deal which is still being negotiated would be implemented as soon as both parties reach a consensus. The National Publicity Secretary, however, believes that this would be done before the end of the month.
“We are going to off-take the product in millions of litres. Before now, most of the imported products in Nigeria were distributed through IPMAN,” Ukadike told the Nigerian newspaper, The PUNCH.
“So, we can off-take the products, no matter the millions of litres that are produced. Dangote has offered to give us over 60 million litres, depending on our patronage,” he added.
The Punch’s report also revealed that considering the competition brought on by the sector’s deregulation, oil traders, on Sunday, saw reductions in petrol prices.
“By just the announcement that IPMAN and Dangote have met and are ready to transact business, the prices of products have crashed. You would have noticed the drop in prices by N10, N15, or so, and this is due to competition,” Ukadike stated.
You can see how our meeting with Dangote has significantly removed about N10 from the prices of refined petroleum products. It is a good development. We have not even started. Remember I once told you that prices would drop once IPMAN started lifting from Dangote,” he added..
