Petrol Prices Set to Drop as Dangote, Marketers Strike Deal

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has secured a deal with Dangote Petroleum Refinery to directly lift petroleum products, a move expected to make fuel more accessible and affordable for Nigerians. IPMAN’s National President, Abubakar Garima, announced the arrangement on Monday in Abuja, explaining that IPMAN will now lift petrol, diesel, and kerosene directly from Dangote for distribution across Nigeria.

Garima stated that this partnership, following discussions with Aliko Dangote, will help ensure a steady fuel supply nationwide at lower prices. This deal will bypass intermediaries, reducing costs and improving delivery efficiency. The collaboration is also aligned with President Bola Tinubu’s Renewed Hope Agenda, supporting economic growth and job creation in the petroleum sector.

Earlier, Dangote reported having 500 million liters of petrol in reserve but noted that marketers had yet to purchase it. IPMAN clarified that while they paid 40 billion Naira to the Nigerian National Petroleum Company Limited (NNPC) for fuel, they have faced issues with product availability. This new agreement with Dangote aims to resolve those distribution bottlenecks.

IPMAN members are also preparing for a transition to Compressed Natural Gas (CNG) as part of the Federal Government’s CNG initiative. Garima encouraged IPMAN outlets to gear up for this shift, which he believes will boost the economy and benefit Nigerians by offering cleaner energy options. IPMAN is pushing for a partnership with the government to accelerate CNG availability nationwide.

Energy expert Kelvin Emmanuel praised the agreement, noting that it could reduce costs typically associated with NNPC’s financing and margin fees, enhancing affordability. IPMAN’s Board of Trustees Chair, Aminu Abdukadir, emphasized that deregulation will require IPMAN to provide more active support by supplying filling stations, funds, and trucks for distribution.

Clement Isong, Executive Secretary of the Major Energy Marketers Association of Nigeria, added that pricing factors such as exchange rates and logistics play a crucial role in final landing costs. He explained that prices can fluctuate based on volume, location, and other market dynamics, highlighting that economies of scale can lead to lower costs in high-volume locations.

This direct lifting partnership between IPMAN and Dangote is expected to streamline fuel distribution, stabilize prices, and improve Nigeria’s energy security by enhancing local refining and distribution capacity.

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