The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement with the Dangote Petroleum Refinery to buy petrol in bulk at reduced rates, marking a significant shift in Nigeria’s fuel supply chain. With over 30,000 IPMAN members now able to directly lift fuel from the refinery, the association expects to see lower petrol prices at retail outlets.
IPMAN President Abubakar Garima announced the deal on Tuesday during an interview, highlighting that fuel prices at IPMAN-affiliated stations are likely to decrease as a result. Garima explained that the Dangote refinery is offering two different pricing options: N940 per litre for fuel loaded onto ships, and N990 per litre for products transported by truck.
“Currently, marketers have the option to either load at N940 per litre via vessels for distribution to depots or load directly at N990 per litre at the refinery’s gantry,” Garima stated. This arrangement, he noted, will especially benefit marketers in locations like Port Harcourt, Warri, and Calabar, where they will use vessels to transport fuel to their private depots before distributing it to IPMAN members.
The new pricing model is expected to eliminate the need for third-party intermediaries, such as the Nigerian National Petroleum Company (NNPC) and depot owners, allowing IPMAN members to reduce their operating costs. This change could lower pump prices by around N50 or more, depending on the location. For example, in Maiduguri, where the price has recently surged to N1,200 per litre, prices could drop to N1,150 or lower under the new agreement.
Garima emphasized that this direct supply arrangement with the Dangote refinery would also help reduce fuel shortages, as products will now be more readily accessible. “Previously, delays were common as we had to wait for products to be released by third parties,” he explained. “Now, by purchasing directly from Dangote, we can swiftly distribute fuel to filling stations, which will ensure steady availability.”
The IPMAN president also revealed that NNPC has started settling a N4 billion debt owed to marketers, a longstanding issue that had previously hampered their operations. According to Garima, the repayments are being processed, reducing the amount owed significantly.
This new partnership between IPMAN and the Dangote refinery marks a critical step towards stabilizing Nigeria’s fuel market, promoting a more reliable supply chain, and potentially easing the financial burden on consumers.
