Petrol prices to drop as IPMAN seeks direct supply from Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed optimism that petrol prices will drop once oil marketers begin lifting products directly from the Dangote Petroleum Refinery.

Chinedu Ukadike, the IPMAN spokesperson, made this known during an interview on Channels Television.

His remarks came in response to the federal government’s directive, which mandates that Dangote Refinery sell petrol exclusively to the Nigerian National Petroleum Company Limited (NNPC), leaving marketers to purchase the product from the national oil company.

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Ukadike revealed that discussions are underway between IPMAN and the Dangote Refinery to allow independent marketers to directly lift premium motor spirit (PMS), commonly known as petrol.

“We’ve reached out to Dangote, and he has responded positively, expressing willingness to sit down with us for discussions. We’re hopeful that once this meeting happens, the outcome will be shared with Nigerians,” Ukadike said.

Addressing misconceptions about independent marketers, Ukadike explained that they are often seen as profiteers who prioritize high prices over public interest, a claim he strongly refuted. He noted that the association is committed to ensuring that petrol is sold at more reasonable prices.

“Our goal with this collaboration with Dangote is to eliminate the multiple layers of distribution that inflate fuel prices. We also look forward to working with NNPC, especially with the Port Harcourt Refinery set to come online soon,” he added.

Ukadike emphasised that IPMAN members are eager to purchase directly from Dangote Refinery, although, as of September 12, only 3 percent of local oil marketers had started buying refined products from the refinery. Devakumar Edwin, vice-president of Dangote Industries Limited (DIL), mentioned that low patronage had forced the refinery to export 97 percent of its products.

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“We want direct access to products to prevent unnecessary price hikes. This is what we’re pushing for, and it’s a straightforward solution,” Ukadike stated.

On the topic of petrol prices, Ukadike highlighted the role of competition and supply in driving prices down. He said that with Dangote Refinery now operational and the Port Harcourt Refinery soon to join, increased competition would naturally lead to lower prices.

“As supply increases, prices will fall. We’ve seen this before with the telecommunications industry, where high prices dropped as competition grew,” Ukadike explained.

He added that independent marketers would be in a position to source products from the cheapest suppliers, ultimately benefiting the end consumers.