The Dangote Petroleum Refinery has introduced a minimum purchase requirement of 500,000 litres of petrol for oil marketers to qualify for its free delivery scheme, a move that has stirred debates across Nigeria’s downstream petroleum sector.
The refinery confirmed the policy this week, explaining that only marketers who purchase half a million litres or more would benefit from the no-cost transportation of products. At the refinery’s gantry price of N820 per litre, this translates to a minimum outlay of about N410 million, equivalent to at least 11 trucks of 45,000 litres each.
A senior refinery official, who asked not to be named, confirmed the development, saying: “Yes, the Minimum Order Quantity for the free delivery is 500,000 litres.”
The requirement has raised concerns among independent petroleum marketers, many of whom argue that the benchmark is too high for most operators to meet.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, acknowledged the difficulty, stating: “Yes, it is true. We have to buy a minimum of 500,000 litres. That requirement has not been easy to follow.”
Ukadike revealed that IPMAN was compiling a list of members who could pool resources together to meet the refinery’s new benchmark and benefit from the delivery incentive.
Industry observers note that while the policy may streamline logistics for the refinery, it could potentially marginalize smaller marketers who lack the financial strength to make such bulk purchases.
