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The Dangote Petroleum Refinery and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have intensified discussions aimed at finalizing agreements for the distribution of petroleum products.
On Monday, PETROAN’s National President, Dr. Billy Gillis-Harry, led the association in negotiating and signing a strategic agreement with the Dangote Refinery in Lagos, signaling growing interest in the refinery’s products.
Notably, the $20 billion refinery, which boasts a capacity of 650,000 barrels per day (bpd), has also drawn commitments from the Major Energy Marketers Association of Nigeria (MEMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN).
However, in a phone interview with Sunday Vanguard, Dr. Gillis-Harry clarified that lifting operations would not begin immediately, as key details such as pricing, volumes, and logistics are still under negotiation.
“We are working out the details,” he said. “Pricing, volume, frequency, and logistics are still being discussed.”
Echoing this, Ehimen Joseph, Chairman of PETROAN’s Lagos State Chapter, emphasized that financing and operational logistics remain critical to ensuring seamless distribution.
“It would likely cost about N42 million per truck of 33,000 litres to lift petrol. The details need to be resolved because loans for operations will incur immediate interest,” he explained.
Earlier, PETROAN expressed optimism in a statement, highlighting measures taken to ensure consistent fuel supply during and after the festive season.
“The National Headquarters of PETROAN, Abuja, is confident that the efforts of our distribution technical committee, combined with the commencement of production at the Port Harcourt Refinery and discussions with Dangote Refinery, will avert fuel shortages,” the statement read.
Dr. Gillis-Harry lauded the Dangote Group’s Vice President and Managing Director of Dangote Refinery, Mr. Devakumar V. G. Edwin, for implementing strategies to make petroleum products accessible nationwide, particularly during the festive season.
The agreement with Dangote Refinery establishes a seller-buyer relationship, with monthly volume reservations and favorable payment terms for PETROAN members.
While specifics of the business terms remain confidential, PETROAN assured Nigerians of the positive impact on product availability and affordability.
The association also dismissed fears of fuel scarcity, urging against panic buying and warning of the dangers of hoarding petroleum products at home.
PETROAN called on stakeholders in the downstream sector to support the Nigerian National Petroleum Corporation (NNPC) Retail Limited and Dangote Refinery to sustain product supply, emphasizing their commitment to ensuring a fuel-scarcity-free festive season.
“All PETROAN retail outlets across Nigeria have been placed on green alert to ensure uninterrupted fuel distribution,” the statement concluded.
