Nigerians May Soon Buy Petrol Cheaper as IPMAN Backs Dangote Direct Supply
- IPMAN says petrol prices are expected to fall further once independent marketers begin buying fuel directly from the Dangote Refinery
- The association believes direct supply will increase competition, reduce distribution costs, and improve fuel availability
- IPMAN says petrol prices could drop below N800 per litre if marketers continue to buy products at lower prices
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that petrol prices will decline further once its members begin purchasing fuel directly from the Dangote Refinery.
Speaking with the News Agency of Nigeria (NAN), IPMAN President Elijah Shettima said securing direct access to refined petroleum products from the refinery remains the association's top priority.
Source: UGC
According to him, removing intermediaries from the supply chain will improve product availability and create room for lower pump prices across the country.
Shettima said:
“Our major concern is to ensure that independent marketers can purchase products directly from the Dangote Refinery.”
He added that marketers should also retain the option of importing petroleum products independently whenever the need arises.
Direct supply to boost competition
Shettima urged the Federal Government to continue supporting local refining by providing an enabling environment for refineries to operate efficiently while encouraging more private investment in the downstream petroleum industry.
He also described the refinery's decision to supply products directly to independent marketers as a significant development for the sector.
According to him, the arrangement is expected to increase competition, reduce distribution costs, and ultimately deliver better value to consumers through lower fuel prices.
More price cuts possible
Addressing concerns about the pace of recent price reductions, the IPMAN president noted that petrol prices would continue to reflect prevailing market conditions.
He revealed that independent marketers have already reduced petrol prices by approximately N125 per litre nationwide and pledged to pass on any further savings in procurement costs to consumers, provided businesses remain profitable.
He said:
“We are ready to reduce prices as long as we can maintain reasonable margins and remain profitable. Our goal is to make fuel more affordable for consumers.”
Source: Getty Images
On the possibility of petrol selling for N900 per litre, Shettima explained that the final pump price would depend largely on the cost at which marketers purchase products from depot owners.
He added that if acquisition costs continue to decline, fuel could even sell for below N800 per litre in areas where market conditions make such pricing feasible.
Source: Legit.ng
