The Independent Petroleum Marketers Association of Nigeria, IPMAN, has begun purchasing Premium Motor Spirit, PMS, commonly known as petrol, at the Dangote Refinery.
The fuel is priced at N940 per liter for shipments transported by ship and N990 per liter for truck deliveries.
This arrangement follows an agreement between IPMAN and Dangote Refinery, allowing over 30,000 IPMAN members to buy fuel directly from the refinery in bulk.
This shift is anticipated to reduce the reliance of independent oil marketers on fuel imports.
IPMAN President Abubakar Garima highlighted that this direct access to Dangote’s supply chain will lower pump prices at IPMAN retail outlets nationwide, as it cuts out intermediaries like the Nigerian National Petroleum Company Limited, NNPCL, and depot owners.
This arrangement may reduce petrol prices by up to N50 per liter, though exact figures will vary by location. For instance, current pump prices in Maiduguri, which stand at N1,200 per liter, could potentially decrease to N1,150 or lower.
The collaboration also aims to address fuel scarcity and supply delays by ensuring more consistent product availability.
Previously, delays occurred because marketers had to wait on third-party approvals and allocations. Direct purchases from Dangote’s refinery will streamline the supply chain, with products sent directly to filling stations.
Garima suggested that, with steady supply and deregulation, the market could experience further price reductions over time as currency and crude oil prices stabilize.
The IPMAN and Dangote agreement follows NNPCL’s decision to pause its exclusive rights as the sole off-taker for the 650,000 barrels per day refinery.
This shift allows independent marketers to secure fuel supplies directly, which IPMAN officials see as a long-term solution for reducing prices and improving product distribution.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed that necessary documentation to begin bulk purchasing is underway. This comprehensive, off-taker arrangement will facilitate efficient bulk purchasing for IPMAN members nationwide.
Additionally, IPMAN’s Vice President, Hammed Fashola, noted that if Dangote’s refinery can meet local fuel demands, there will be little need for further fuel imports.
IPMAN has long advocated for local production and views the Dangote refinery as a sustainable partner in addressing Nigeria’s fuel supply issues.
While a specific start date for product lifting has not been set, both IPMAN and Dangote are finalizing logistical arrangements to streamline the process for IPMAN members.
Moreover, Garima mentioned that NNPCL is addressing its outstanding debts to marketers, with significant progress made toward reducing the N4 billion owed.
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