Nigeria Nigerian Oil Marketers Anticipate Petrol Price Drop with Direct Lifting from Dangote Refinery

Oil marketers in Nigeria assure that petrol prices will drop once direct lifting from Dangote Refinery begins. Following a recent price surge, stakeholders like IPMAN emphasize the need for independent distribution to eliminate price disparities and foster competition, promising more affordable fuel options for consumers.

Oil marketers have expressed optimism that prices for Premium Motor Spirit (PMS), commonly known as petrol, will decrease once they begin direct lifting from Dangote Refinery. This assurance comes in light of a recent surge in petrol prices following the Nigerian National Petroleum Company Limited’s (NNPCL) commencement of product lifting from the refinery.

Currently, petrol prices have soared to ₦950 per litre in Lagos and up to ₦1000 per litre in northern regions. Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that discussions are underway with Dangote Refinery for a direct lifting agreement. He emphasized the importance of involving IPMAN, which operates approximately 85% of Nigeria’s filling stations, in the distribution process.

Ukadike highlighted that direct engagement with independent marketers would eliminate price disparities currently affecting consumers. He noted, “Once we commence direct lifting from Dangote, the issue of pricing will be resolved, fostering competition and ultimately lowering prices.” He compared the current petrol situation to the market for Automotive Gas Oil (AGO), where prices fell significantly after IPMAN started purchasing directly from Dangote.

This potential shift to direct lifting aligns with the ongoing liberalization of the Nigerian fuel market, allowing stakeholders like IPMAN to play a crucial role in product distribution and pricing. As discussions progress, consumers hope for more affordable fuel options in the near future.