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IPMAN Members Begin Fuel Purchases At N990 Per Liter From Dangote

Published

1 week ago

Nov 13, 2024.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that its members can now purchase petrol directly from Dangote Refinery at rates of N990 per liter for loading at depots and N940 per liter when transported by vessel.

This landmark agreement, aimed at providing a steady and potentially cheaper fuel supply across Nigeria, signals a shift away from reliance on imports as IPMAN’s 30,000 members will lift fuel directly from the $20 billion Lekki-based refinery.

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EKO HOT BLOG reports that during a television interview, IPMAN President Abubakar Garima explained that this arrangement offers members flexibility in pricing, with depot-based purchases at N990 per liter and vessel purchases at a slightly lower rate of N940.

“With this partnership, we’re looking at a reduction in pump prices at our retail outlets due to the elimination of intermediary costs, and we expect prices to drop significantly in various regions,” Garima said.

The agreement followed the Nigerian National Petroleum Corporation’s (NNPC) recent suspension of its sole off-taker role at the refinery, allowing IPMAN members direct access to the refinery’s 650,000-barrel-per-day fuel production.

IPMAN Fuel Dangote

The collaboration is expected to ease supply chain issues that often lead to fuel scarcity, as products can now be delivered directly from Dangote Refinery to depots and retail outlets without delays from intermediaries.

Meanwhile, IPMAN is finalizing logistics to begin lifting fuel nationwide, with marketers noting that the streamlined process could reduce petrol prices by up to N50 in locations where prices had soared as high as N1,200 per liter. “Since we’re bypassing third-party costs, we expect an immediate drop in prices for consumers as more product becomes available,” Garima added.

With fuel shortages anticipated to ease and distribution costs lowered, the new deal also holds promise for stabilizing Nigeria’s fuel market, making petrol more accessible across the country.