See Reasons Petrol Prices Could Drop
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a new agreement with Dangote Petroleum Refinery to directly source refined products, potentially leading to lower petrol prices for Nigerians.
At a press briefing in Abuja on Monday, IPMAN’s National President, Abubakar Garima, shared details of the deal following a meeting with Dangote’s management. Under the agreement, Dangote Refinery will supply Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK) directly to IPMAN depots and retail outlets. This new arrangement, Garima explained, will ensure consistent and affordable fuel availability nationwide.
“We are pleased to announce that Dangote Refinery has agreed to supply IPMAN members with PMS, AGO, and DPK directly, which will help us offer these products to Nigerians at more affordable rates,” Garima stated.
The agreement comes after a series of challenges between IPMAN and Dangote Refinery, where IPMAN members had reported difficulties in obtaining petrol from the refinery despite paying N40 billion to the Nigerian National Petroleum Company (NNPC). Dangote had claimed that oil marketers were not purchasing the refinery’s products, but IPMAN refuted this, saying they had not been able to access supplies for days.
Garima urged IPMAN members to fully support Dangote Refinery, emphasizing the long-term benefits of backward integration and its positive impact on Nigeria’s foreign exchange market.
“We believe that this collaboration will not only improve product availability and affordability but also boost Nigeria’s job market and support President Bola Tinubu’s Renewed Hope Agenda,” he added.
Energy expert Kelvin Emmanuel highlighted that the deal would eliminate additional costs incurred by the NNPC, such as financing and margin fees, which are typically passed onto marketers. “This will streamline costs for IPMAN and improve efficiency at retail outlets,” he said.
In addition to the petrol supply agreement, Garima revealed that IPMAN is preparing to transition to Compressed Natural Gas (CNG) refilling stations. The association is currently in talks with the presidential CNG initiative to ensure a smooth implementation.
“We are committed to supporting the federal government’s CNG initiative, which has the potential to greatly benefit the Nigerian economy. Our members are ready to implement the transition to CNG refilling stations at our outlets,” Garima affirmed.
This partnership with Dangote Refinery is expected to eliminate intermediaries, lower prices, and improve the overall efficiency of Nigeria’s petroleum distribution network. Earlier this year, Dangote Refinery had announced its plan to supply fuel to over 150,000 retail outlets operated by marketers.
Aminu Abdukadir, Chairman of IPMAN’s Board of Trustees, emphasized the importance of the association’s active involvement in ensuring the success of the initiative. “IPMAN must invest in the necessary infrastructure and resources to ensure that petrol reaches consumers,” he said.
Meanwhile, Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria (MEMAN), explained that fuel pricing is influenced by several factors, including exchange rates, logistics, and purchasing volumes. He noted that while the landing cost of petrol has decreased, the final retail price will vary based on these factors.
“Prices will vary depending on the logistics involved and where the product is landed. Some marketers may have lower costs due to economies of scale, but the majority will face higher costs depending on the location and exchange rates,” Isong explained.
The collaboration between Dangote and IPMAN is expected to enhance Nigeria’s energy sector by increasing supply reliability and affordability, benefiting both consumers and the national economy.
