Petrol Price Set to Drop as Marketers Begin Direct Loading from Dangote Refinery
The Dangote Refinery has also decided to reduce petrol prices, which is expected to boost local demand
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has started directly sourcing Premium Motor Spirit (PMS), commonly known as petrol, from the Dangote Refinery located in Ibeju-Lekki, Lagos State.
This initiative follows an agreement reached in November 2024 between IPMAN and the refinery to streamline fuel supply to independent marketers.
IPMAN’s National President, Abubakar Garima, announced this development after a meeting of the association’s National Working Committee in Abuja on November 11.
He described the partnership as a significant step towards ensuring a steady and affordable supply of petrol across Nigeria. Garima explained that the agreement was finalized after discussions with Aliko Dangote and his management team in Lagos.
“We are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets,” Garima stated. He also urged IPMAN members to support the Dangote Refinery, highlighting the benefits of backward integration and its potential positive impact on Nigeria’s foreign exchange market.
Reports indicate that independent marketers have been lifting millions of litres of petrol from the Dangote Refinery since late November. IPMAN’s National Publicity Secretary, Chinedu Ukadike, noted that lifting initially began through MRS Oil while the documentation processes between IPMAN and the refinery were being finalized.
“There is a pre-arrangement we had. Our experts are working on the documentation. Dangote Refinery made products available to us through MRS, and we started loading gradually in November,” Ukadike explained. He addressed concerns about using MRS Oil, clarifying that it was a temporary measure to ensure smooth operations while addressing supply gaps.
The Dangote Refinery has also decided to reduce petrol prices, which is expected to boost local demand. According to Ukadike, the arrangement with IPMAN has contributed to lower petroleum product prices by removing intermediaries and reducing profiteering.
“The most important thing is that IPMAN members have started buying directly from Dangote. We have been uploading products stored in the tanks meant for commuters,” he added. This collaboration is anticipated to strengthen Nigeria’s fuel supply chain and enhance the availability of petroleum products at competitive prices. Read More
