The Independent Petroleum Marketers Association of Nigeria (IPMAN) has secured a bulk purchase deal with Dangote Petroleum Refinery, allowing members to buy petrol at N990 per liter when transported by truck. This direct supply arrangement aims to reduce pump prices, ensure consistent availability, and potentially end fuel importation.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached a significant agreement with Dangote Petroleum Refinery, allowing its over 30,000 members to purchase Premium Motor Spirit (PMS), commonly known as petrol, directly from the refinery at N990 per litre when transported by truck. Marketers can also opt for vessel transportation, which brings the price down to N940 per litre. This deal marks a turning point for the Nigerian fuel distribution network, as IPMAN members will no longer have to rely on the Nigerian National Petroleum Corporation (NNPC) or other intermediaries for their petrol supply.
IPMAN President, Abubakar Garima, explained that this arrangement would help reduce the cost of petrol across the country. The elimination of third-party involvement is expected to cut out additional costs, such as those from depot owners and the NNPC. Garima highlighted that prices in regions like Maiduguri, where petrol currently costs as much as N1,200 per litre, could see a reduction of up to N50 or more.
This agreement also addresses the issue of fuel scarcity, as marketers will now have direct access to products from the Dangote refinery. Garima assured Nigerians that with more consistent availability, fuel distribution will improve nationwide. Additionally, the partnership is expected to help stabilize the market, potentially leading to continuous reductions in petrol prices if supply remains steady and other factors, such as crude oil prices and the Naira exchange rate, remain favorable.
