Dangote Refinery and IPMAN have signed a deal to supply 60 million litres of petrol weekly, leading to price reductions at filling stations. The agreement, which aims to stabilize fuel prices in Nigeria, is expected to bring down prices by N10 to N50 per litre.
Dangote Refinery and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have reached an agreement for a weekly supply of 60 million litres of Premium Motor Spirit (PMS), also known as petrol. This deal is expected to help address fuel shortages and potentially lower petrol prices across the country.
IPMAN spokesperson, Chinedu Ukadike, confirmed the development on November 18, 2024, explaining that the direct petrol supply agreement with Dangote Refinery would lead to a reduction in fuel prices at filling stations nationwide. He noted that the price of petrol has already dropped by between N10 and N50 per litre in stations where IPMAN members operate.
The deal, which will begin with a supply of 60 million litres of petrol per week, marks a significant step toward addressing the nation's fuel distribution challenges. Ukadike further explained that the supply volume could increase depending on demand from IPMAN members, helping to stabilize the market. The price reductions observed at filling stations are attributed to the increased competition and the deregulation of the oil and gas sector, which has allowed for more market-driven pricing.
This agreement with Dangote Refinery follows a previous announcement on November 11, 2024, that IPMAN had secured a direct supply deal with the refinery. The deal is seen as a positive move towards ensuring a steady and more affordable supply of petrol in Nigeria.