Petrol Price Drop on the Horizon as IPMAN, Dangote Seal Deal for Direct Fuel Sales

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that the commencement of direct sales of Dangote’s Premium Motor Spirit (PMS) to its members will lead to a significant reduction in fuel prices in the country in the coming days.

James Tor, the National Secretary of IPMAN, made this statement in an exclusive interview with Nigeria News 247 on Monday. His comments followed an earlier announcement by IPMAN’s National President, Abubakar Maigandi, that Dangote Refinery had agreed to sell petrol directly to IPMAN members. This agreement with the Dangote Refinery, which has a production capacity of 650,000 barrels per day, marks the end of the middleman role previously held by the Nigerian National Petroleum Corporation Limited (NNPCL) in the initial lifting of Dangote petrol, which took place on September 16, 2024.

According to Nigeria News 247, the new agreement means that petrol marketers will no longer rely on imported fuel, opting instead to source directly from Dangote’s refinery.

James Tor highlighted that this direct purchase arrangement will lead to a significant drop in petrol prices, as well as improved availability of the product across the country. He explained that, with the agreement in place, the price of petrol at independent marketers’ filling stations could fall below N1,150 per litre.

“If the agreement is fully implemented, we will see a drastic reduction in the price of gasoline,” Tor said. “This will make the product more readily available and cheaper at our stations, with prices potentially dropping well below N1,150 per litre, depending on the terms agreed with Dangote Refinery.”

A spokesperson for Dangote Group, Anthony Chiejina, confirmed that IPMAN and Dangote Refinery had reached an agreement for the direct sale of PMS.

The move follows a recent announcement by the Nigerian government that the Nigerian National Petroleum Corporation Limited (NNPCL) would no longer be the exclusive off-taker of Dangote petrol. This change is part of the implementation of the Naira-for-crude deal, which was approved by the Finance Minister, Wale Edun, on October 11, 2024, allowing petrol marketers to lift Dangote petrol directly.

The new agreement between IPMAN and Dangote Refinery has also put an end to the recent controversy surrounding fuel prices. Last week, Dangote Refinery disclosed that it was selling gasoline at N960 and N990 per litre for shipments and truck deliveries. Earlier, IPMAN had argued that imported fuel was cheaper than Dangote’s petrol.

Nigeria News 247 also reports that the landing cost of imported petrol dropped to N971 per litre in November 2024, according to the Major Oil Marketers Association of Nigeria. However, petrol prices at filling stations across the country remained between N1,060 and N1,200 per litre.

With the new direct sales agreement between IPMAN and Dangote Refinery, Nigerians could soon see petrol priced at or below N1,060 per litre, depending on the final pricing details worked out between the two parties.

It is worth noting that in the past two months, the price of petrol has doubled, rising from N617 per litre in August 2024 to between N1,060 and N1,200 per litre. This increase has had a direct impact on Nigeria’s inflation, which stood at 32.70% in September 2024.