Dangote

IPMAN, Dangote Reach Agreement On Direct Petrol Supply Deal.

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  The Independent Petroleum Marketers Association of Nigeria has secured an agreement with Dangote Refinery to lift products directly. IPMAN’s National President, Abubakar Garima, announced this at an ongoing press briefing on Monday in Abuja, following a meeting of the National Working Committee of the Association. He said the partnership would ensure a steady, affordable supply of PMS products nationwide. “After meeting with Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets.” Garima urged IPMAN members to support Dangote Refinery, citing the benefits of backward integration and its positive impact on Nigeria’s foreign exchange market. “IPMAN members should rely on Dangote Refinery and Nigerian refineries for white products, creating more job opportunities and supporting President Bola Tinubu’s renewed hope agenda.” The latest development concludes several months of negotiations between both parties and is expected to increase efficiency, affordability, and economic growth. The Dangote Refinery, the largest in Africa and Europe, has already commenced the production of petrol, diesel, and aviation fuel, with plans to supply products to over 30,000 IPMAN members and 150,000 retail outlets nationwide. This move is expected to eliminate middlemen, reduce costs, and ensure a steady supply. More details soon…

Dangote Refinery Starts Direct Petrol Sales To Marketers

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  The Dangote Petroleum Refinery has started supplying Premium Motor Spirit, popularly called petrol, to some oil marketers directly without recourse to the Nigerian National Petroleum Company Limited. It was gathered that while more oil marketers were intensifying efforts to buy the product directly from the plant, others were importing the commodity, as hundreds of millions of litres of imported PMS should hit Nigeria’s shores in two weeks’ time. Recall that The PUNCH exclusively reported on Monday that no fewer than four vessels carrying imported PMS arrived at seaports situated along the nation’s borders between Friday, October 18, and Sunday, October 20. The report cited a document obtained from the Nigerian Port Authority, which showed that about 123.4 million litres of PMS were berthed at two seaports to improve fuel supply nationwide. The development confirmed an earlier exclusive report by The PUNCH, which disclosed that oil dealers intend to import the commodity to supplement the supply from the $20bn Dangote refinery. Meanwhile, as major oil marketers import the commodity, their counterparts have started lifting PMS directly from the Lekki-based plant. A senior official at the refinery said marketers are now allowed to approach the company for direct business transactions on a willing-buyer, willing-seller basis. “Marketers are already coming to the refinery to lift PMS. They are lifting directly from the refinery, not through a third party,” the reliable official, who spoke in confidence due to lack of authorisation to speak on the matter, stated. The source, who could not tell the price at which marketers were lifting the product, noted that the oil dealers would not come if the price was not favourable to them. “We have reached agreements with some of the marketers and more are still ongoing. I don’t know the exact price, but if the price is not good, the marketers would not be coming to us,” the official stated. He maintained that things are improving, especially as the Federal Government commenced the supply of crude to the facility. Another official at the facility showed one of our correspondents the trucks of some marketers loading the product directly from the plant without going through NNPC. “Some of the trucks you saw there today were from marketers purchasing the product directly from Dangote, without recourse to NNPC. So the direct sale has started,” the source stated. The official explained that due to the high demand for petrol in Nigeria and other countries, the refinery had focused on ensuring 53 per cent of PMS production from its crude oil supplies. “This could be reviewed in future if the demand for other finished products increases more than the demand for petrol, but right now about 53 per cent of our crude is used for petrol production, while other products account for the remaining percentage,” the official stated. When asked if marketers had started the direct purchase of petrol from Dangote without recourse to NNPC, one of the notable major marketers in the country replied in the affirmative. “Yes, everyone is in the process. This was advised that it would happen soon and is a normal business transaction,” the source stated. But this is contrary to claims from some quarters that the refinery would not be able to sell petrol to marketers unless the deal between it and the NNPC is terminated. The PUNCH recalls the company had initially announced that the NNPC would be the sole off-taker of its petrol from September 15. A source at the refinery said this was as decided by the Federal Government. The source said he was taken aback when the Technical Subcommittee on Domestic Sale of Crude Oil in Local Currency announced on October 11 that marketers should now lift petrol directly from the refinery. “Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, which will promote competition and improve market efficiency,” the Minister of Finance, Wale Edun, who heads the committee stated in a statement. As the committee made the announcement, operators said the market had been fully deregulated and they would approach the refinery to apply for PMS lifting. The PUNCH recalls that the Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, recently led other officials of the association to a meeting with the Vice President of the Dangote Industries, Devakumar Edwin, in Lagos. Though Fashola did not give much updates about the meeting with Edwin, he appreciated him for the roles he had been playing. “Edwin received us very well and promised to make things easier for IPMAN to do business with Dangote,” he said. Fashola added, “We had a fruitful discussion with the group. We have started discussing modalities and other logistics. IPMAN has agreed to work with Dangote. We hope very soon we will start lifting products from the facility.” However, IPMAN said it could not commence the immediate off-take of the product unless the refinery ends its contract with the NNPC. But officials at the refinery stated that the refinery was now selling PMS to some marketers. When the Dangote refinery began the sale of PMS on September 15, the NNPC said it bought the product at the rate of N898/litre; a claim the refinery described as mischievous. The refinery said the naira-for-crude committee would be the one to announce the price of its PMS. The committee has yet to do so as of October 22.  

Sell Petrol To Us At Dangote Price Or Return Our Money – IPMAN Tells NNPC

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  The National President of Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, has urged the Nigerian National Petroleum Company Limited (NNPC) to sell Premium Motor Spirit (PMS), commonly known as petrol, to its marketers at the same rates offered by Dangote Petroleum Refinery. Shettima, while speaking Thursday on Channels Television, also demanded a refund of the funds owed to the oil marketers, which have been held by NNPC for the past three months. He stressed the financial strain that the prolonged delay in refunds had placed on petroleum marketers, urging the NNPC to take immediate action. “Our major challenge now is that already, we have an outstanding debt by the NNPC and the company collected product through Dangote refinery at a lower rate — not up to N900. “Presently, our money has been with them (NNPC) for almost three months. “But with the recent changes, we have requested that they sell to us at Dangote price or return our money. That’s the current situation and is the reason for the scarcity. We started negotiation yesterday,” he said. According to him, the national oil company has directed the IPMAN members “to buy the product from them at the rate of N1,010 in Lagos, N1,045 in Calabar, N1,050 in Port Harcourt, and N1,040 in Warri”. Expressing displeasure at the NNPC’s stance that marketers should buy petrol directly from the Dangote refinery, Shettima said: “We have a problem with that because already, we buy products from them. “So when they made this increment, they told us to add money and buy above what Dangote is selling products to them. “That is the reason we told them to return our monies to our banks so that we can go directly to Dangote refinery and buy, if that’s the case.” “The NNPC does not sell on credit and we buy products ahead of loading. Anytime they have products, they will call us to collect our products.”

Dangote To FG: End Fuel Subsidies Now To Stabilize Naira

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  The President and Chief Executive of Dangote Group, Alhaji Aliko Dangote, has called on the Federal Government to end fuel subsidies completely. He said the removal would help determine the actual petrol consumption in the country, as he confirmed ownership of two oil blocks in the upstream sector with an expected production date of next month. But the scarcity of the greenback in the Nigerian foreign exchange market continues to weigh on the naira and is made worse by the need to pay for imported gasoline in dollars. “Petroleum products consume about 40 per cent of our foreign exchange,” Dangote said, adding that fuel from his refinery, which started supplying gasoline on Sept. 15 to the state-owned oil company for domestic sale, “can actually stabilize the naira.” Continuing in the interview, the businessman revealed the details of the pricing disagreement that occurred with the Nigerian National Petroleum Company Limited. He said the national oil company bought its current stock from the refinery at a cheaper price than its imported fuel but gave a uniform price for all products. “There wasn’t really a disagreement, per se. NNPC bought from us on the 15th of September at the international price, which they also bought, about 800,000 metric tons of gasoline imported. So the one that they bought from us actually is cheaper than the one they are importing. “And so when they announced our price, the guy, I don’t know whether he was authorized. It wasn’t really the real price. What they have announced is most likely that is what it cost them, including profit and other expenses. “And then the other one is one that they imported. But the people don’t know how much they spend in terms of imports, but their importation is almost, maybe about 15 per cent more expensive than ours, you know. “So what they are supposed to do is to sell at a basket price, or if they want to remove subsidy, they can announce that they will remove subsidy, which is okay, everybody you know will adjust it.” On the planned crude oil sales anticipated to begin in October, Dangote said that discussions are still ongoing and a detailed agreement will be finalised this week. Revealing details of the deal, he explained, “We will sell the crude in naira after we have bought in naira. So now we are currently working out with the committee that the exchange rate is going to be priced. It is going to be normal pricing, you know, if crude is at $80, we will pay that price at an agreed exchange rate. “And then we will also sell in the domestic market. What that will do is that it’s going to remove 40 per cent pressure on the naira. So because, see, the petroleum products consume about 40 per cent of foreign exchange, so you know, and then, you know, it’s like you have 40 per cent of demand been taken out so that can actually stabilize the naira and even if they subsidise, they would know what they are paying for. “The deal is to give the government something that they want. It’s also a win-win situation for all and it would benefit the country. “Currently, discussions are still ongoing to determine the details of the agreement. They are working out something that I think would be a win-win between us and the NNPCL. “The agreement is very robust. Well, first of all, we would have energy security where they will give us crude. For example, in October, they’re going to give us 12 million barrels, which is on average, about 390,000 barrels a day, which will sell both gasoline, diesel, and aviation fuel.” He also confirmed ownership of two oil blocks in the upstream sector with an expected production date of next month. Dangote tankers’ park Meanwhile, the Federal Government has said that it is providing land for interested entities to build an expansive park for tankers lifting petrol and other products from the Dangote refinery. This followed a routine inspection on Sunday by the Minister of Works, Dave Umahi, who raised concerns about over 3,000 fuel tankers queueing up on the new concrete pavement road. Umahi noted that though the pavement is made of concrete the current road was not designed to handle static load and may soon deteriorate like the ever-busy Apapa road. This minister revealed this to State House Correspondents after Monday’s Federal Executive Council meeting at the Aso Rock Villa, Abuja. He said, “From my inspection yesterday, we discovered that we had over 3,000 fuel trucks queuing for the Dangote fuel lifting, and they were all parked on the newly constructed road. “Technically and by design, the roads were never built for static loads. And so it has a lot of effects. So, we will have the same thing we had in Apapa that damaged the entire road until it was constructed on concrete.” “So what FEC approved today is that the land that we have, the Federal Government land, we should put it for concession so that concessionaires would bid and whoever wins will be able to build a park. The park will be tolled so all those trucks can safely park there. And the pavement of such a park is quite different from the pavement of the road.” Umahi also announced that the council approved various road projects. He said, “The council approved several road projects. One is a new contract for rehabilitating Maraban-Kankara-Funtua Road in Katsina state. The second is the award of a contract for the construction of a 258km three-lane carriageway, a component of the 1,000 Sokoto-Badagry superhighway section two, phase 2A in the Kebbi Section. It is to be done with continuous reinforced concrete pavement. It excludes all bridges and flyovers. “The third one is the contract for the construction and dualisation of Afikpo-Uturu-Okiwe in Ebony, Abia, and Imo State, Section Two. The next one is the Bodo-Bonny road in Rivers State under Julius Berger. … Read more

NNPCL Purchases Fuel from Dangote Refinery at N898 per Litre

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  The Nigerian National Petroleum Company Limited (NNPCL) has announced that it has acquired fuel from Dangote Refinery at a price of N898 per litre. The oil firm had moved about 300 trucks to the 650,000 capacity refinery in Lagos, on Saturday, and loading commenced on Sunday. Speaking with Daily Trust over the price of premium motor spirit (PMS), otherwise known as petrol, Chief Spokesperson of the NNPCL, Olufemi Soneye, said, “We successfully loaded PMS at the Dangote Refinery today. The claim that we purchased it at N760 per liter is incorrect. For this initial loading, the price from the refinery was N898 per liter.” He told our correspondent that as of the time of filing the report, over 70 trucks had been loaded. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, had announced that NNPCL would be the sole off-taker of refined petrol from Dangote Refinery. At the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira, on Friday, the Finance Minister who was represented by Zacch Adedeji, Executive Chairman of Federal Inland Revenue Service (FIRS), had said diesel from the Dangote Refinery would be sold in Naira to any interested off-taker, while PMS would only be sold to NNPCL, which will then sell to various marketers. He announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. FEC under the leadership of President Tinubu had approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira. The government explained that the initiative was aimed at reducing pressure on the naira, eliminating unnecessary transaction costs, and improving the availability of petroleum products in the country. “Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval. “I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September. From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira. “In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira. Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now,” he said. He added that all associated regulatory costs (NPA, NIMASA, etc.) will also be paid for in Naira. The government, according to the minister was also setting up a one-stop shop in Lagos, that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative.

300 Trucks Arrives at Dangote Refinery Ahead of Petrol Loading

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  The Nigerian National Petroleum Company Limited (NNPC) has confirmed that around 300 trucks have arrived at the Dangote Refinery in Ibeju-Lekki. This milestone sets the stage for the planned commencement of petrol loading, scheduled for Sunday, September 15, 2024. Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, disclosed this development via the social media platform X. “NNPC Ltd. trucks are arriving at the Dangote Refinery in preparation for the scheduled petrol loading,” Soneye stated. He emphasized that by the end of Saturday, at least 300 trucks would be stationed at the refinery’s fuel loading gantry, ready for action. In addition to the trucks already on-site, NNPC has mobilized an extensive fleet to facilitate the loading process. As of Saturday afternoon, the company reported that over 100 trucks had been deployed, with hundreds more en route to support the operation. This loading marks a significant milestone, as it follows the announcement last week by Aliko Dangote, Chairman of the Dangote Group, regarding the commencement of fuel production at the refinery. The NNPC, acting as the sole off-taker of petrol from the facility, projects to lift the product at prices ranging from N960 to N980 per litre, with expectations that it will be sold to marketers at approximately N840 to N850 per litre. This could potentially lead to a reduction in pump prices for consumers, with petrol estimated to retail between N857 and N865. Despite optimism over lower price points, the uniformity of these rates at filling stations nationwide remains uncertain. Presently, petrol prices at NNPC retail stations in Lagos are around N855 per litre, making it the most affordable option compared to major marketers who charge approximately N920. Independent sellers are even higher, with prices exceeding N1,000 per litre in some areas, while some regions of the country report prices above N1,200. As the NNPC prepares for tomorrow’s loading at the Dangote Refinery, all eyes will be on the impact this operation will have on petrol pricing and availability across Nigeria.

Maiduguri Flood: Dangote Donates N1.5 Billion To Victims

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  Alhaji Aliko Dangote, President of the Aliko Dangote Group, has donated N1.5 billion to support the victims of the flood disaster in Maiduguri. He made the announcement during an assessment visit to some of the affected locations in Maiduguri.Accompanied by Governor Abdullahi Sule of Nasarawa state, Dangote said out the amount, N1 billion was given to National Emergency Management Agency (NEMA) to work with the Borno State government. “I just want to clarify, we have this flood committee. NEMA wrote us a letter; so we sat down and approved N1 billion to NEMA to work with the Borno State government. On top of that, the Aliko Dangote Foundation will put additional N500 millions so that’s #1.5 billion. Thank you,” he said. Earlier, Gov Sule also announced the donation of unspecified number of trucks of relief materials to support the Borno state government. Responding, Governor Babagana Zulum praised them for generosity and love towards the people of Borno. “Not everyone that has money has the heart of giving, Aliko Dangote has been helping our people, this is not first time. I pray that Allah will reward you with Aljannah.” “I would like to thank my brother, Gov Abdullahi Sule, who came along with Aliko Dangote to visit us at this trying moment.”

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