Finally, Marketers Agree to Crash Petrol Prices as Dangote Sells Fuel at Reduced Cost after Deal
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) said about 30,000 of its members will start lifting petrol from the Dangote Refinery
- The association’s president, Abubakar Maigandi, said that the refinery agreed to sell the product at N940 and N960, respectively
- He said the development means that petrol prices will crash at the pumps in the coming weeks following the new deal
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade
The Independent Petroleum Marketers Association of Nigeria (IPMAN) says over 30,000 of its members are ready to buy petrol in bulk from the Dangote Refinery.
The association revealed that the petrol price from the mega refinery was about N940 per litre via ships and N990 via trucks.
Source: UGC
Marketers to end petrol imports after deal
Findings show that the oil marketers may end import following the deal to start product lifting from the 650,000bpd-capacity refinery.
IPMAN president Abubakar Maigandi disclosed in a television interview on Tuesday, November 12, 2024, that the petrol pump prices at its outlets will drop following the deal with the refinery.
The association reached a deal with the $20 billion refinery on Monday, November 11, 2024, to purchase petrol, diesel, and other petroleum products directly.
The agreement comes after months of negotiations following the exit of the Nigerian National Petroleum Company Limited (NNPC) as the sole off-taker of the refinery.
Petrol prices to crash by over N50
Maigandi explained that the Lekki-based facility had been obliged to let marketers buy petrol, diesel, and Kerosene to supply to their depots and retail outlets.
The IPMAN boss updated Nigerians on the pricing, saying the refinery gave marketers two rates based on preferences.
He said marketers can load at the gantry at N990 per litre or vial vessel transport at N940.
Punch reports that the new price is lower than the N960 and N990 per litre on ships and trucks offered by the refinery last week.
The IPMAN helmsman disclosed that the partnership aims to ensure a consistent and affordable supply of petrol and other products nationwide.
He stated further that petrol prices may crash by N50 or more, depending on the location.
PETROAN set up a meeting with Dangote Refinery
According to Maigandi, the direct purchase of petrol from the refinery will end payments to intermediaries such as the NNPC and depot owners, saying that the cost will reflect on petrol prices in the coming weeks.
The IPMAN president said the new arrangement will also end fuel scarcity as products will be available nationwide in all seasons.
Additionally, the management of the Dangote Refinery is set to meet with Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) officials to discuss petrol lifting.
The group’s publicity secretary, Joseph Obele, said the refinery, through its president, Billy Harry, mailed seeking a business meeting.
Obele said Harry has inaugurated a team of seven persons to represent the association at the meeting.
NNPC to now sell only Dangote petrol
Legit.ng earlier reported that NNPC had announced that it stopped importing refined petroleum products.
Mele Kyari, NNPC’s Group Chief Executive Officer, disclosed this while speaking at the Lagos's Nigerian Association of Petroleum Explorationists’ (NAPE) conference and said that the company now sources its fuel needs from the Dangote Petroleum Refinery.
Kyari confirmed that NNPC has shifted away from importation and will source from local refiners, especially Dangote, according to BusinessDay reports.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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