The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the new direct sale of Premium Motor Spirit (PMS) from Dangote Refinery to its members will reduce fuel prices across Nigeria soon.
James Tor, IPMAN’s National Secretary, disclosed this in an exclusive interview with DAILY POST on Monday. His comments follow IPMAN President Abubakar Maigandi’s statement confirming that Dangote Refinery has agreed to sell petrol directly to IPMAN members.
The deal with the 650,000-barrel-per-day Dangote Refinery marks a shift from the Nigerian National Petroleum Company Limited’s (NNPCL) role as the intermediary in petrol distribution, which began on September 16, 2024. As a result, IPMAN members are expected to prioritize Dangote’s petrol over imported options.
Tor noted that this agreement would likely lead to a substantial drop in pump prices and better availability of petrol across the country. He indicated that IPMAN members could soon sell petrol below N1,150 per liter in their outlets, depending on Dangote Refinery’s supply terms.
Anthony Chiejina, spokesperson for Dangote Group, confirmed the agreement, which follows recent IPMAN calls for direct PMS sales from Dangote Refinery. This partnership comes after the government announced that NNPCL would no longer be the sole off-taker for Dangote petrol, as part of the Naira-for-crude deal overseen by Finance Minister Wale Edun.
This arrangement also resolves recent disputes over fuel pricing between IPMAN and Dangote Refinery. Dangote previously set gasoline prices at N960 to N990 per liter for large buyers. Although IPMAN initially viewed imported fuel as cheaper, the direct agreement is expected to stabilize or lower retail prices nationwide.
In the broader context, Nigeria’s inflation rate—at 32.70% in September 2024—has been impacted by recent increases in energy prices, which climbed to between N1,060 and N1,200 per liter from N617 in August. With this direct sale arrangement, however, prices are projected to fall within or below N1,060 per liter, benefitting Nigerian consumers.