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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a direct fuel sales partnership with Dangote Refinery, expected to drive down petrol prices across the country.

Petrol prices set to drop as IPMAN, Dangote Refinery strike direct sales deal | Pulse Nigeria

Segun Adeyemi

<h2>The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a direct fuel sales partnership with Dangote Refinery, expected to drive down petrol prices across the country. </h2>

The agreement, confirmed by IPMAN National Secretary James Tor, could make petrol more affordable and accessible for millions of Nigerians.

In an interview with an online media, Tor highlighted the agreement's potential to reduce petrol prices at IPMAN member outlets, projecting a price below ₦1,150 per litre.

"If the business agreement kicks off, you will see a drastic reduction in the price of gasoline," he stated. Tor emphasised the advantage this partnership gives IPMAN, whose members operate an extensive network of filling stations across Nigeria, ensuring widespread access to cheaper fuel.

READ ALSO: <a href="https://www.pulse.ng/news/marketers-oppose-dangotes-call-for-exclusive-refining-rights/lyty2ls">Marketers slam Dangote’s call for exclusive refining rights</a>

The direct sales arrangement follows IPMAN President Abubakar Maigandi's announcement that Dangote Refinery, Africa's largest oil refining facility, has agreed to bypass intermediaries, including the Nigerian National Petroleum Company Limited (NNPCL).

<h3>Stipulations of IPMAN, Dangote deal</h3>

Under the deal, IPMAN marketers will lift Dangote-produced Premium Motor Spirit (PMS) directly, circumventing the costs typically added by middlemen.

"This agreement eliminates the need for imported fuel, providing a reliable source from Dangote," Tor added.

Direct sales are also expected to ease the distribution of petrol, improving availability and stabilising the market. In recent months, the landing cost of petrol has fluctuated, with prices reaching as high as ₦1,200 per litre in some areas, spiking inflation and straining consumers' finances.

Anthony Chiejina, Dangote Group's spokesperson, confirmed the agreement, noting that it could ease ongoing price tensions.

READ ALSO: <a href="https://www.pulse.ng/news/ipman-condemns-higher-prices-for-dangote-petrol-than-imports/1mhg1sj">Marketers decry Dangote petrol prices exceeding cost of imported fuel</a>

The refinery, which began operations in September, currently offers petrol at ₦960 per litre for bulk sales to ships and ₦990 per litre to trucks. However, the exact pricing terms for IPMAN's direct purchases are still being finalised.

This agreement comes amid broader government reforms aimed at diversifying the petrol distribution process.

Under a recent policy shift, the NNPCL no longer holds exclusive rights to distribute Dangote fuel, following a Naira-for-crude initiative championed by the Ministry of Finance. The decision aligns with a government-led effort to stabilise energy prices and reduce inflationary pressures, which reached 32.70% in September.

With the direct fuel sales agreement, IPMAN hopes to stabilise and relieve Nigeria's fuel market, where prices have doubled in the past two months.

As negotiations between IPMAN and Dangote continue, the outcome will determine if Nigerians can finally expect the long-awaited fuel price relief.

A fuel attendant refuels a customer's vehicle at a gas station in the Yaba suburb of Lagos, Nigeria, on Saturday, July 29, 2023. [Getty Images]

Petrol prices set to drop as IPMAN, Dangote Refinery strike direct sales deal

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