IPMAN Predicts Fuel Price Drop in Nigeria Following Direct Purchase Agreement with Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that fuel prices across the country are expected to decrease soon due to direct sales of Premium Motor Spirit (PMS) from Dangote Refinery to its members.

James Tor, IPMAN’s National Secretary, shared in an interview with DAILY POST on Monday that this development follows an agreement between IPMAN and Dangote Refinery to bypass the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary in the fuel distribution chain. This direct arrangement, effective since September 16, 2024, replaces imported fuel with Dangote-produced petrol for IPMAN members.

Tor emphasized that this agreement would benefit Nigerians by reducing the price of petrol and improving its availability at filling stations nationwide. He projected that the retail price at Independent Marketers' stations would drop to below N1,150 per litre.

“If the business agreement kicks off, you will see a drastic reduction in the price of gasoline,” he stated. “For obvious reasons, it will lead to easy availability of the product and price factor. We are the major stakeholders who have filling stations across the country.”

Anthony Chiejina, spokesperson for Dangote Group, confirmed the agreement between IPMAN and Dangote Refinery for direct PMS sales. In recent weeks, gasoline marketers have been in discussions with Dangote Refinery regarding such a partnership, spurred by the Nigerian government’s decision to end NNPCL's exclusive right as the off-taker of Dangote Petrol under the Naira-for-crude program. This policy shift was authorized by the Naira-for-crude committee, chaired by Finance Minister Wale Edun, on October 11, 2024.

Last Monday, Dangote Refinery announced its gasoline prices at N960 per litre for trucks and N990 per litre for ships. IPMAN had previously claimed that imported petrol was cheaper than Dangote’s.

According to the Major Energies Marketers Association, the price of gasoline in November 2024 dropped to N971 per litre. However, Nigerians currently pay between N1,060 and N1,200 per litre at various stations. With the IPMAN-Dangote direct sale agreement, petrol prices could fall to N1,060 or less per litre in the coming days, though the final rate will depend on the specific terms agreed upon.

In recent months, gasoline prices have doubled, rising from N617 per litre in August 2024 to between N1,060 and N1,200. This surge has impacted Nigeria’s inflation rate, which stood at 32.7% as of September 2024, largely driven by escalating energy costs.