Petrol Price Cut Imminent as IPMAN and Dangote Reach Agreement on Direct Fuel Sale

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

James Tor, the National Secretary of IPMAN, shared this information during an interview on Monday. His comments follow the announcement by IPMAN’s National President, Abubakar Maigandi, who revealed that Dangote Refinery has agreed to sell petrol directly to the association’s members.

The agreement between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Dangote Refinery, which processes 650,000 barrels of oil per day, marks the end of the Nigerian National Petroleum Company Limited’s (NNPCL) role as an intermediary for the first sale of Dangote petrol on September 16, 2024.

Under this direct sale agreement, petrol marketers have shifted from importing fuel to sourcing it directly from Dangote Refinery.

Tor, commenting on the impact of this arrangement, emphasized that Nigerians can expect a significant reduction in petrol prices, along with improved availability of the product across the country.

James Tor, speaking on the impact of the direct purchase agreement between IPMAN and Dangote Refinery, explained that Nigerians will witness a significant reduction in the price of petrol, along with an improvement in the availability of the product nationwide.

He further stated that the agreement would lead to a drop in the pump price of petrol at independent marketers’ retail outlets, bringing it below N1,150 per litre.

“If the business agreement kicks off, you will see a drastic reduction in the price of gasoline.

“For obvious reasons, it will lead to easy availability of the product and price factor. We are the major stakeholders who have filling stations across the country.

“The price of petrol in our filling station will go much below N1,150 in our retail outlets depending on what Dangote Refinery agreed to give to us,” he said.

Anthony Chiejina, the spokesperson for Dangote Group, confirmed that IPMAN and Dangote Refinery have reached an agreement for the direct sale of Premium Motor Spirit (PMS).

This development follows recent efforts by petroleum marketers to secure a partnership with Dangote Refinery for direct PMS sales.

The move comes after the Nigerian government announced that the Nigerian National Petroleum Company Limited (NNPCL) would no longer be the sole off-taker of Dangote Petrol, as part of the Naira-for-crude deal implementation.

On October 11, 2024, the Naira-for-crude implementation committee, chaired by the Minister of Finance, Wale Edun, authorized petrol marketers to begin lifting Dangote Petrol.

The recent agreement between IPMAN and Dangote Refinery on the direct sale of petrol has resolved the ongoing dispute over fuel pricing between oil marketers and the refinery.

Last week, Dangote Refinery announced that its gasoline is sold at N960 and N990 per litre for ships and trucks.

Prior to this, IPMAN had argued that imported fuel was cheaper than Dangote’s petrol. GistHub reports that the petrol landing cost decreased to N971 per litre in November 2024, according to the Major Energies Marketers Association.

Despite this, Nigerians are still purchasing petrol at prices ranging from N1,060 to N1,200 across various filling stations.

However, with the new direct sale agreement between IPMAN and Dangote Refinery, it is expected that the price of petrol may fall to N1,060 per litre or lower.