The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced an agreement with Dangote Refinery to sell Premium Motor Spirit (PMS) directly to its members, a move expected to significantly lower fuel prices across the country. The direct sales arrangement aims to bypass middlemen, particularly the Nigerian National Petroleum Company Limited (NNPCL), which previously facilitated the fuel’s distribution from Dangote.
According to James Tor, IPMAN’s National Secretary, the agreement should drive down pump prices at IPMAN retail outlets below N1,150 per litre. Tor emphasized that direct access to Dangote Refinery’s output will also increase fuel availability, alleviating supply bottlenecks that have plagued the sector.
“Once this deal is implemented, there will be a noticeable reduction in gasoline prices, as well as enhanced availability of the product at IPMAN outlets nationwide,” Tor stated.
Anthony Chiejina, spokesperson for Dangote Group, confirmed the direct sale agreement. This follows recent efforts by petroleum marketers to seek an alternative to imported fuel, which had been touted as a cheaper option than Dangote’s local supply. With IPMAN now able to source directly from Dangote, industry observers expect local prices to stabilize, potentially bringing them down to within N1060 per litre or below.
The agreement comes amid Nigeria’s broader efforts to diversify its fuel supply chain and address escalating energy costs, which have contributed to a recent rise in inflation, now at 32.7%. The full impact of this new direct sale arrangement on market prices will unfold as details of the pricing structure are clarified in the days ahead.
