Fuel Prices Set to Drop as Dangote Refinery Prepares Free Distribution for Marketers
- Dangote Petroleum Refinery plans to deliver petrol directly to marketers at no transport cost
- IPMAN President Abubakar Shettima said the initiative will cut logistics costs, reduce reliance on imports, and allow marketers to lower retail fuel prices.
- The refinery’s free delivery plan is part of a broader effort to stabilise supply, support local marketers
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
A nationwide petrol price adjustment is expected soon as marketers prepare to take free delivery of products from Dangote Petroleum Refinery.
Modalities are currently being finalised to ensure all areas of the country are covered.
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Leadership reports that the exercise would commence soon, with adequate bridging to include key marketing associations that have expressed interest in partnering with the refinery.
New fuel price expected
Market operators are already anticipating a downward price adjustment in response to the refinery’s planned free delivery of refined petrol to registered members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and petrol stations nationwide, targeting January 2026.
The ultimate target is to improve supply, stabilise prices, and support local marketers, though this is a logistical service (free transport) rather than giving away fuel for free to the public, with the goal of lowering pump prices by cutting distribution costs and bypassing middlemen.
National President of IPMAN, Abubakar Shettima said that the country would witness a downward effect on pump prices once the exercise begins.
“Our members anticipate a further crash from current price levels. Once the exercise begins, IPMAN members will review downward pump price levels to reflect the gains from free distribution."
Shettima explained that transportation costs are a major factor putting pressure on pump prices
"With Dangote’s trucks offsetting these logistics costs, prices are expected to drop significantly, particularly in northern Nigeria."
He added that members would no longer need to source products from importers, further reducing associated costs.
The IPMAN president urged the government to reduce reliance on imported products, noting the negative impact on the economy.
Dangote Refinery, he said, is building on existing facility expansions to provide adequate support services for petroleum marketers, with free product delivery scheduled to commence in January 2026.
IPMAN has called on its members nationwide to prioritise purchasing from the refinery, which already offers competitive prices for marketers.
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Dangote gets recognition
Shettima praised Dangote’s support of the Federal Government, highlighting the regular reduction of petroleum pump prices.
He continues:
" There will be no gap or scarcity in PMS supply to Nigerians. We are excited about the agreement for Dangote Refinery to supply PMS directly to registered IPMAN members with free delivery nationwide, which will further reduce pump prices.”
He added that the partnership with Dangote Refinery is aligned with government policies to deepen domestic refining and reduce dependence on imported petroleum.
Shettima said.
“Continuous import is not a sustainable model. Reckless import licensing distorts market dynamics, drains foreign exchange, destroys jobs, and discourages investors."
NNPC new petrol price
Earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) has released a fresh set of petrol pump prices across its retail outlets nationwide.
Petrol now sells for N815 per litre in Abuja, while Lagos residents pay N785 per litre, following a recent price adjustment by the national oil company.
To remain competitive and reflect improved supply dynamics, NNPC adjusted its pump prices across states.
Source: Legit.ng
