A recent agreement between the Independent Petroleum Marketers Association of Nigeria (IPMAN) and Dangote Refinery is expected to lower fuel prices in Nigeria, IPMAN announced on Monday.
The deal, confirmed by IPMAN’s National Secretary, James Tor, enables direct sales of Dangote’s Premium Motor Spirit (PMS), to IPMAN members, bypassing intermediaries and potentially reducing petrol prices below N1,150 per liter.
This arrangement ends the role of the Nigerian National Petroleum Company Limited (NNPCL), as the middleman since the inaugural lifting of Dangote’s PMS in September.
Tor highlighted that the direct supply of Dangote’s fuel would increase availability and cut costs for consumers nationwide.
“If this agreement proceeds as planned, Nigerians will see a substantial price reduction and improved access to fuel across IPMAN’s network,” Tor said.
The change is part of Nigeria’s broader Naira-for-crude initiative, which recently permitted fuel marketers to source directly from Dangote, under the oversight of Finance Minister Wale Edun’s committee.
With Dangote’s petrol currently priced between N960 and N990 per liter for large shipments, this new arrangement could stabilize consumer prices around or below N1,060 per liter, depending on further pricing negotiations.
The past few months saw petrol prices soar, reaching N1,060 to N1,200 per liter, following increases from August’s rate of N617 per liter, contributing to Nigeria’s inflation rise to 32.7% in September.
The IPMAN-Dangote partnership could offer some relief to Nigerians struggling with high fuel costs, although the final retail price will depend on further details of the deal.
