The Independent Petroleum Marketers Association of Nigeria (IPMAN) has begun sourcing Premium Motor Spirit (PMS), commonly referred to as petrol, directly from the Dangote Refinery in Lagos. This marks a significant development in Nigeria’s energy sector, promising to stabilise fuel prices and improve supply logistics.
A Historic Collaboration
This collaboration follows an agreement reached in late 2024 between IPMAN and Dangote Refinery to streamline the supply chain by reducing intermediaries. IPMAN President Abubakar Garima confirmed that the partnership includes the supply of petrol, diesel, and kerosene, enabling independent marketers to procure directly from the refinery instead of relying on imports or secondary distributors.
Price Reduction and Economic Benefits
The Dangote Refinery has reduced petrol prices from N990 to N970 per litre, making the product more accessible to Nigerians. This price cut, combined with direct distribution, is expected to further decrease retail costs. The move addresses long-standing issues of profiteering and inflated prices caused by multiple layers in the supply chain. IPMAN’s National Publicity Secretary, Chinedu Ukadike, highlighted that millions of litres of fuel have already been lifted under this arrangement, with the refinery initially supplying through MRS Oil during the documentation phase.
Strategic Impact
This development strengthens Nigeria’s energy independence, as local refining reduces the need for imports and supports the country’s foreign exchange reserves. It aligns with the Federal Government’s broader vision of leveraging domestic refining capacity, particularly with the Dangote Refinery and the soon-to-reopen Port Harcourt Refinery.
Challenges and Prospects
While the partnership offers immense potential, logistical issues such as payment modalities and member sensitisation are still being resolved. IPMAN Vice President Hammed Fashola expressed optimism, stating that as fuel supply from the refinery becomes consistent, the association sees little need for future imports.
The collaboration is a milestone for Nigeria’s oil and gas sector, paving the way for enhanced efficiency, reduced prices, and economic growth. The success of this initiative could serve as a model for future partnerships in the energy sector, further boosting Nigeria’s self-reliance.