- Over 30,000 members of IPMAN will now directly purchase petrol from Dangote Refinery, cutting out middlemen like the NNPC and depot owners
- The new arrangement is set to bring petrol prices down by as much as N50 per litre, with some regions seeing prices dip below N1,150 per litre
- With direct supply from Dangote’s refinery, IPMAN members say Nigeria could soon eliminate the need for petrol imports altogether
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a groundbreaking agreement with the Dangote Petroleum Refinery to directly lift petrol from the country’s largest refinery in Lekki, Lagos.
Over 30,000 IPMAN members are set to buy Premium Motor Spirit (PMS) in bulk, marking a major shift in Nigeria’s petroleum distribution network.
Under the new deal, IPMAN members can purchase petrol at a rate of N940 per litre when transported by vessels, or N990 per litre when using trucks to transport the fuel to their respective depots.
This deal is expected to significantly reduce the cost of fuel for consumers, with the possibility of price reductions nationwide in the coming weeks.
IPMAN President Abubakar Garima, speaking on Channels Television, confirmed that the new arrangement will eliminate the need for independent marketers to import petrol.
The deal, which also covers diesel and kerosene, follows a decision by the Nigerian National Petroleum Corporation (NNPC) to suspend its role as the exclusive off-taker of products from the Dangote refinery, which has a capacity of 650,000 barrels per day.
Garima explained that IPMAN members will now directly purchase products from Dangote’s refinery for distribution to their retail outlets across the country.
The refinery has also agreed to allow marketers to load petrol, diesel, and kerosene from its facilities without intermediaries like the NNPC or depot owners, potentially lowering costs.
“The new arrangement will help eliminate the role of third-party intermediaries, including depot owners and the NNPC, which have been adding costs to the price of fuel.
“We expect the price of petrol to drop by as much as N50 per litre or more depending on location, as a result of these changes,” Garima said.
The new pricing model is expected to significantly reduce fuel prices, with Garima projecting that the cost of petrol in some regions could fall from as high as N1,200 per litre to around N1,150 per litre, or even lower.
This move is expected to reduce the widespread fuel scarcity that has plagued the country in recent years.
Garima added that the direct purchase model would also address issues related to product availability, as marketers would no longer have to wait for supply from third parties.
“The issue of delays caused by intermediaries will be eliminated. Once we get the product from Dangote, we can immediately distribute it to our stations,” he said.
In addition to reducing prices, the direct supply arrangement is expected to play a pivotal role in the full deregulation of Nigeria's petroleum sector.
The removal of intermediaries will streamline the supply chain, and according to Garima, could lead to continued reductions in fuel prices as the market stabilizes.
"The masses are looking for how we, Independent Petroleum Marketers, can reduce prices for them. So, as long as the product is available, the market will likely continue to push prices down, especially as the Naira appreciates and crude oil prices fluctuate," Garima explained.
IPMAN's Vice President, Hammed Fashola, echoed Garima’s sentiments, noting that if petrol can be sourced locally from the Dangote refinery, there will be no need for Nigeria to continue importing petrol.
"Once we are getting the fuel we need, there is no point in importing anymore," Fashola stated.
While the deal with Dangote has been finalised, the logistics for the fuel lifting process are still being put in place. IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that the association is working on the necessary documentation to begin the lifting process soon. However, he clarified that no specific date has been set for the start of fuel distribution.
“We are still finalising the logistics, including payment modalities and other technical arrangements,” Ukadike said.
"But the good news is that we have been granted permission to start lifting fuel directly from Dangote."
Ghana eyes long-term supply deal with Dangote oil refinery
Meanwhile, TheRadar earlier reported that Ghana hinted at possible long-term supply agreements with Dangote Oil Refinery.
This was disclosed by the head of the country’s oil regulator, Mustapha Abdul-Hamid, at the Oil Trading and Logistics (OTL) Africa Downstream Oil Conference in Lagos on Monday, October 28, according to a report by Reuters.
