In a groundbreaking development, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that its members will begin purchasing Premium Motor Spirit (PMS) directly from Dangote Refinery, paving the way for reduced fuel prices nationwide.
IPMAN National Secretary, James Tor, revealed that the partnership would lead to a drastic reduction in fuel prices, making petrol available at IPMAN retail outlets for below N1,150 per litre. “If the business agreement kicks off, you will see a drastic reduction in the price of gasoline… The price of petrol in our filling stations will go much below N1,150,” Tor stated.
The agreement marks the end of the Nigerian National Petroleum Company Limited’s (NNPCL) middleman role in the inaugural lifting of Dangote Petrol, which began on September 16, 2024. Dangote Group spokesperson, Anthony Chiejina, confirmed the direct sales agreement.
With the direct purchase agreement, petrol marketers have abandoned imported fuel for Dangote’s petrol. This shift is expected to boost product availability and reduce prices. The Major Energies Marketers Association reported a drop in petrol landing cost to N971 per litre in November 2024.
Industry experts predict fuel prices will drop to N1,060 per litre or below, a significant decrease from the current N1,060-N1,200 range. The partnership’s pricing details will determine the final price.
The development follows the Nigerian government’s announcement allowing petrol marketers to lift Dangote Petrol, part of the Naira-for-crude deal implementation. The controversy between oil marketers and Dangote Refinery over fuel prices has been resolved.
The reduced fuel prices are expected to positively impact Nigeria’s inflation rate, which stood at 32.70% in September 2024.
