New Fuel Prices Expected as Marketers Reaches Agreement With Dangote Refinery

• Oil marketers have reached an agreement with Dangote refinery for the direct purchase of petroleum products
• The agreement means that NNPC Limited will no longer serve as an intermediary in the purchase and sale of Dangote petrol
• Nigerians will be hoping that the agreement will mean a reduction in the price of fuel at filling stations

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced an agreement with Dangote Refinery to purchase premium motor spirits (petrol), diesel, and other refined products directly.

Abubakar Garima, IPMAN National President, disclosed the deal after the Association’s National Working Committee meeting on Monday, November 11, in Abuja.

For weeks, oil marketers and the Dangote refinery have been in a war of words over the purchase and distribution of petrol products. Punch reports.

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The agreement marks a key development in Nigeria’s petroleum industry, which Nigerians hope will reflect positively on the retail price of fuel.

IPMAN gives details on the agreement with Dangote refinery

Speaking further, Garima revealed that the new partnership would ensure a more consistent and affordable Premium Motor Spirit (PMS) nationwide supply.

He said:

"After meeting with Alhaji Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets."

The IPMAN leader also spoke on the importance of supporting local refining capacity, noting that the Dangote Refinery’s backward integration model could offer numerous benefits, including job creation and potential improvements in Nigeria’s foreign exchange market.

Channels report that Garima urged members to prioritise the Dangote Refinery and other Nigerian refineries for white products, aligning with the administration’s economic agenda.

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Marketers explain decision to import petrol from abroad despite Dangote Refinery, seek more licences

Expectations on new fuel prices

He also expressed optimism that the direct collaboration with Dangote Refinery would lead to more competitive fuel pricing; he refrained from disclosing specific price details.

However, industry observers anticipate that the new supply chain could significantly change pump fuel prices as negotiations continue between the marketers and the refinery.

NNPC raises petrol price

Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) had raised the petrol price again.

The development came as Aliko Dangote, chairman of the Dangote Group, said that petrol was idle at his refinery without patronage.

Source: Legit.ng