Nigeria’s downstream petroleum sector is on the brink of a major supply chain shift as the Independent Petroleum Marketers Association of Nigeria (IPMAN) finalises preparations for direct fuel deliveries from the Dangote Refinery, scheduled to begin on August 15, 2025.
Direct-to-Retail Model to Disrupt Depot System
This rollout signals a strategic departure from the long-standing reliance on third-party depots. Dangote Refinery’s plan to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers nationwide will enable direct deliveries of Premium Motor Spirit (PMS) and diesel to retail stations, industrial users, and critical sectors like aviation and telecoms. The aim is to eliminate middlemen, cut lead times, and bring greater price stability to the market.
IPMAN’s Full Readiness for the Rollout
While some rival associations—such as the Natural Oil and Gas Suppliers Association (NOGASA) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have raised concerns about being edged out, IPMAN is embracing the change.
IPMAN National President Alhaji Abubakar Maigandi told newsmen:
“We are ready for Dangote. We have already started cleaning our filling stations, waiting for his trucks to come and discharge. Most of our members have registered, and now we’re counting down to the start.”
Price Cuts Fuel Optimism
Dangote Refinery has already reduced the gantry price of PMS from ₦840 to ₦820 per litre, prompting widespread pump recalibrations among IPMAN members in anticipation of a new retail price announcement.
Maigandi stressed that exchange rate swings and distribution expenses, along with crude oil costs, drive PMS prices, and the refinery’s integrated refining and distribution system can stabilise the market.
Analysts Predict Market Transformation
Industry analysts believe the direct-to-retail strategy could reshape competitive dynamics in Nigeria’s downstream sector by reducing logistics costs, curbing speculative hoarding, and ensuring faster turnaround times.
As August 15 approaches, the IPMAN–Dangote partnership aims to transform Nigeria’s fuel distribution system, delivering quicker supplies, streamlining operations, and ensuring more predictable prices for millions of motorists nationwide.