The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached a landmark agreement with the Dangote Petroleum Refinery, signaling a potential shift in the country’s fuel distribution and pricing structure.
With more than 30,000 members set to buy petrol directly from Dangote’s refinery in Lekki, Lagos, this deal is poised to transform Nigeria’s fuel landscape, offering consumers relief from soaring prices and supply chain inefficiencies.
Under the new arrangement, IPMAN members will have the option to purchase Premium Motor Spirit (PMS) at a rate of N940 per litre if transported via vessels, or N990 per litre when using trucks to bring the fuel to their depots.
This pricing model eliminates the middlemen—such as the Nigerian National Petroleum Corporation (NNPC) and depot owners—who have traditionally added significant costs to the price of fuel.
According to IPMAN President Abubakar Garima, the new deal could lead to a price drop of up to N50 per litre across the country, with some regions potentially seeing prices as low as N1,150 per litre.
This development comes as a major boost to Nigeria’s fight against the persistent fuel scarcity that has plagued the country in recent years.
“By eliminating third-party intermediaries, we expect that the cost of petrol will drop significantly,” Garima told Channels Television. “The reduction could be up to N50 per litre, and in some areas, it could be even more.”
The agreement also marks a significant step toward the full deregulation of Nigeria’s petroleum sector. IPMAN’s new direct-supply model will help stabilize the fuel market, improve availability, and foster more competitive pricing by reducing the logistical hurdles typically associated with importing petrol.
The deal also includes diesel and kerosene, products which will also be supplied directly from Dangote Refinery, further reducing reliance on third-party suppliers.
IPMAN Vice President Hammed Fashola emphasized the potential long-term benefits of sourcing petrol domestically: “Once we are getting the fuel we need directly from Dangote Refinery, there is no reason for Nigeria to continue importing petrol.”
As Dangote Refinery gears up to enter international markets, exporting over 200,000 metric tonnes of petrol abroad, the refinery’s production capabilities are expected to grow. Despite currently producing less than a third of Nigeria’s domestic fuel needs, Dangote Refinery’s capacity of 650,000 barrels per day is poised to play a pivotal role in both Nigeria’s domestic and international fuel markets.
However, as IPMAN works out the logistics of the deal, including payment modalities and other technical arrangements, consumers will have to wait a little longer for the immediate impact on fuel prices and supply.
“We are still finalizing the necessary documentation to begin lifting fuel directly from Dangote,” confirmed Chinedu Ukadike, IPMAN’s National Publicity Secretary. “While we don’t have a specific start date yet, the good news is that we’ve been granted permission to begin soon.”
The partnership between Dangote Refinery and IPMAN marks a significant turning point in Nigeria’s petroleum industry. If successful, it will not only alleviate the fuel crisis but also bring much-needed price stability and availability, while reducing the country’s dependency on imported petroleum products. As Nigeria’s refining capacity continues to grow, the nation may be on the cusp of a fuel market transformation that will benefit both consumers and the economy.
