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PETROAN, Dangote Refinery Negotiate Deal for Steady Petroleum Supply
EKO HOT BLOG reports that on Monday, Dr. Billy Gillis-Harry, the National President of PETROAN, led the association in negotiations with Dangote Refinery in Lagos.
The talks reflect growing interest in the $20 billion refinery’s products, with members from the Major Energy Marketers Association of Nigeria (MEMAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) also committing to source supplies from the 650,000 barrels per day facility.
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However, in a phone interview with Sunday Vanguard on Sunday, Gillis-Harry clarified that lifting would not commence immediately as discussions continue on pricing, volume, and logistics. He stated, “We are working out the details. Pricing, volume, frequency, and logistics are still being discussed.”
Echoing this, Ehimen Joseph, Chairman of the Lagos State Chapter of PETROAN, noted the challenges involved in lifting petroleum products, such as financing and logistics. “Lifting comes with challenges, including operations and logistics. The cost to lift petrol could be around N42 million per truck of 33,000 liters. The details need to be finalized because if we take a loan, the interest will accrue immediately,” he explained.
Earlier, PETROAN expressed confidence in its ability to prevent fuel supply shortages during and after the festive season. A statement from the association highlighted the strategic measures implemented by its distribution technical committee, which is responsible for ensuring a “zero-fuel scarcity strategy.”
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PETROAN’s National President, Dr. Billy Gillis-Harry, led the association’s negotiation team to a successful business meeting with Dangote Refinery’s management on December 2, 2024, at the refinery complex in Lagos. The meeting resulted in a successful buyer-seller agreement, securing a relationship with Dangote Refinery, reserving a monthly volume for PETROAN, and finalizing payment terms at favorable rates.
PETROAN acknowledged the efforts of the Vice President of Dangote Group and Managing Director of Dangote Refinery, Mr. Devakumar V. G. Edwin, in ensuring product availability during the festive season. While the association has not disclosed the specific business terms, it remains optimistic that the agreement will benefit the public through improved product availability and affordability.
PETROAN has also dismissed concerns of potential fuel scarcity and urged against panic buying, which it describes as both unsafe and dangerous. The association called for continued support from downstream sector stakeholders, including the management of NNPC Retail Ltd and Dangote Refinery, to maintain a steady supply of petroleum products.
The association reassured Nigerians of its readiness to prevent fuel shortages during the holiday season, stating that all its retail outlets across the country have been placed on green alert.
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