Fuel Pump Price May Drop as Dangote Agrees to Deal with Oil Marketers
- Nigerians will be expecting a new fuel pump price as marketers prepare to buy petrol directly from the Dangote refinery
- The agreement, which the IPMAN president announced, will now end NNPC Limited's role as an intermediary
- The price of fuel at filling stations across the country is around N1,000 per litre to N1,300 per litre
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 agreed on a deal with Dangote Petroleum Refinery to lift petroleum products from the facility directly.
The agreement was announced by IPMAN’s National President, Abubakar Garima, at a press briefing on Monday, November 11.
Source: Getty Images
Punch reports that IPMAN said the association will ensure the availability of petroleum to Nigerians at a cheaper rate.
Nigerians pay around N1,100 to N1,300 per litre and hope the agreement will mean prices fall below N1,000.
Details of Dangote's deal with IPMAN
Garima also revealed that with the agreement, IPMAN members will lift PMS, AGO and DPK directly for onward supply to IPMAN depots and retail outlets. Guardian report added
His words:
"Following our recent meeting with Alhaji Aliko Dangote and his senior management team in Lagos, we are pleased to announce that Dangote Refinery has granted IPMAN permission to directly lift PMS, AGO, and DPK for distribution to IPMAN depots and retail outlets.
"This new arrangement with Dangote Refinery will ensure a continuous and reliable supply of PMS products across Nigeria, at affordable rates for all Nigerians."
Regarding pricing, Garima expressed confidence that negotiations with Dangote would yield lower rates.
He added:
“"All IPMAN members are encouraged to fully support the Dangote Refinery, as it is the right course of action, given the significant benefits of backward integration and the long-term positive impact it will have on Nigeria's Foreign Exchange markets.
"IPMAN members across the country should depend on Dangote Refinery and other Nigerian refineries for their white products. This will not only create more job opportunities within Nigeria but also demonstrate strong support for President Bola Tinubu’s Renewed Hope Agenda."
Expert speaks
Reacting to the marketers, Dangote agreement, Energy expert Kelvin Emmanuel explained that the NNPCL will incur no more margin costs.
He said:
“What is particularly encouraging about this development is that the financing cost of NNPC’s letter of credit ($28 per metric tonne), which was previously passed on to IPMAN—responsible for 30,000 retail stations—along with their margin ($26.48 per metric tonne), will now be eliminated."
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.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
