Following the increase in the ex depot price of premium motor spirit (PMS) or petrol to N950 per litre from a previous N909 per litre by depot owners, there is now a surge in oil marketers seeking to key into the bulk-purchase agreement incentives being offered by the Dangote Petroleum Refinery.
The refinery, which has pegged the minimum petrol quantity that can be purchased by marketers at two million litres, has consistently sold the product at N909 per litre since the festive period irrespective of the upward movement in international crude oil price.
While the depot owners based their price increase in the price of crude oil in the international market, a situation that has forced most independent marketers to raise their pump price too to reflect the new higher price from the depot owners, the petroleum marketers may have now switched their attention to Dangote Refinery, which, they argued, offers a guaranteed price stability as against purchase from depot owners whose price is opened to incessant upward review as has just been announced.
Recently, two operators in the country’s downstream oil and gas sector – Ardova Plc and Heyden Petroleum, partnered with the Dangote Refinery for a bulk purchase agreement, following the footsteps of MRS, thereby able to sell petrol at a much cheaper pump price.
The National President, Independent Petroleum Marketers Association (IPMAN), Abubakar Maigandi, confirmed that the association members are eager to sign on with Dangote Refinery and that they have been advised to do so by organising themselves to pool resources together to be able to qualify for the bulk-purchase agreement.
He was emphatic that IPMAN can no longer continue to depend on depot owners for products when they can buy directly from the Dangote Refinery.
The management of the Dangote Refinery citing economic relief provided by President Bola Tinubu’s crude-for-naira swap initiative had announced a bulk-purchase offer incentives to the three downstream sector operators, citing its desire to give relief to consumers.
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Dangote Refinery had said the strategic move was designed to further stabilise the nation’s fuel market and enhance energy security for consumers, as it would guarantee steady supply of petroleum products at affordable prices.
The bulk purchase agreement incentive by Ardova and Heyden came on the heels of a drop in the pump price of petrol by the management of MRS Oil Nigeria Plc, which had previously entered into a similar agreement with Dangote Refinery.
As a result, MRS Oil lowered its fuel prices to N935 per litre across all its stations nationwide, addressing the long-standing issue of price disparities between states. Furthermore, MRS Oil’s stock surged to a new 52-week high recently, as investors became increasingly optimistic about the company’s future earnings prospects.
Reports indicate that the bulk purchase agreement with Dangote Petroleum Refinery had also enabled both Ardova and Heyden to secure a reliable and consistent supply of petroleum products from the world’s largest single-train refinery at competitive prices, benefiting consumers across the country.
The arrangement ensures that Ardova and Heyden will have access to a full range of refined products, thereby securing their operations with a reliable supply chain. Other petroleum markers, reports said, are keen on signing similar agreement with Dangote Refinery as soon as they are allowed to, as most of them have majority of their filing stations in Lagos close to Dangote Refinery.
