Marketers in Nigeria are shifting to Dangote Refinery as petrol depot prices rise to N950 per litre. The price hike is due to global crude oil price increases. IPMAN members are encouraged to buy directly from Dangote Refinery to secure more competitive rates, marking a significant shift in the industry.
Amid a sharp rise in petrol depot prices, which have increased by 4.7% to N950 per litre, marketers in Nigeria are adjusting their purchasing strategies. The Independent Marketers Association of Nigeria (IPMAN) has announced a major shift towards purchasing petrol directly from Dangote Petroleum Refinery. This move comes in response to escalating costs tied to the global oil market.
The price hike is largely driven by the recent increase in crude oil prices, which have surged from $73 to $80 per barrel. As a result, IPMAN's leadership has encouraged members to buy directly from Dangote Refinery, where the price per litre is more competitive. According to Chinedu Ukadike, IPMAN’s Public Relations Officer, the refinery offers a price of N909 per litre for bulk purchases, with a minimum order of two million litres.
This shift is a significant departure from the reliance on traditional depot owners, whose prices have been less favorable in comparison. Additionally, marketers are also considering MRS, which distributes Dangote refinery petrol at a reduced price, especially when the product is transported over long distances, such as from Lagos to Kano.
IPMAN's National President, Alhaji Garima, further clarified that while some members still purchase from the Nigerian National Petroleum Corporation (NNPCL), the limited availability of products from NNPCL has made Dangote Refinery the preferred option. He emphasized that the government’s removal of fuel subsidies has contributed to the volatility of petrol prices, leaving market forces to determine future price trends.
The decision to shift to Dangote Refinery marks a new chapter in Nigeria’s petroleum distribution network, with implications for both marketers and consumers as the fuel supply chain adapts to the changing market dynamics.
