The Independent Petroleum Marketers Association of Nigeria (IPMAN) announced that over 30,000 of its members will begin purchasing Premium Motor Spirit (PMS), or petrol, in bulk directly from the Dangote Petroleum Refinery.
This agreement with the $20 billion Lekki-based refinery is expected to have a major impact on fuel pricing and supply across the country.
This development could reshape the petroleum supply chain by eliminating intermediary costs, including payments to the Nigerian National Petroleum Corporation (NNPC) and depot owners.This marks a potential shift in the petroleum supply chain, with the possibility of eliminating intermediary costs, including payments to the Nigerian National Petroleum Corporation (NNPC) and depot owners.
Garima explained that this arrangement allows IPMAN members to directly lift petrol, diesel, and other petroleum products, which will help reduce fuel prices at retail outlets. He projected that the price of petrol could drop by N50 or more, depending on location. For example, in Maiduguri, where petrol currently costs N1,200 per litre, the price could potentially drop to N1,150 or lower.
The direct purchase from the Dangote refinery eliminates the need for third-party intermediaries, which Garima says will result in lower costs and help combat fuel scarcity. Marketers will now be able to receive products promptly from the refinery, reducing delays and ensuring more consistent fuel supply.
This collaboration follows the Nigerian National Petroleum Corporation’s suspension of its plan to serve as the sole off-taker of products from the Dangote refinery. Garima also noted that the NNPC has started paying off a N4 billion debt to marketers, further boosting the positive outlook for fuel supply and pricing in Nigeria
CREDIT: Allneeds, THE PUNCH
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