The Traffic

"Game Changer: Dangote Refinery Deal Promises Cheaper Fuel Prices for Nigerians"

By Achimi Muktar

In a major breakthrough for Nigeria’s oil industry, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has struck a landmark deal with the Dangote Refinery to lift petroleum products at reduced rates. The agreement is set to bring significant relief to Nigerians as fuel pump prices are expected to drop by over ₦50 per litre in the coming weeks.

Marketers Seal Direct Deal with Dangote Refinery

The president of IPMAN, Abubakar Maigandi, announced that over 30,000 marketers under the association will now source petrol directly from the Dangote Refinery, bypassing intermediaries like the Nigerian National Petroleum Company Limited (NNPC). The refinery, which boasts a capacity of 650,000 barrels per day, has set bulk purchase prices at ₦940 per litre for shipments and ₦990 per litre for truck deliveries.

This arrangement signals a move away from fuel importation as marketers shift to locally refined products. Maigandi noted that the direct access to Dangote Refinery’s products will stabilize fuel supply across the country and significantly lower prices at the pump.

Petrol Prices Set to Crash Nationwide

Consumers can expect to see pump prices drop by at least ₦50, depending on their location, as the cost savings from the deal trickle down. The refinery’s pricing is already lower than previous weeks, reflecting a commitment to affordability.

Maigandi said, “This partnership ensures a consistent and affordable supply of petrol and other products nationwide, reducing the financial burden on Nigerians.”

Ending Fuel Scarcity and Reducing Costs

The new arrangement is poised to end recurring fuel scarcity by eliminating payments to intermediaries and ensuring uninterrupted supply throughout the year. With IPMAN now purchasing directly from the refinery, unnecessary markups from depot owners and other middlemen will be eliminated.

Additionally, the Dangote Refinery is in talks with the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) to extend its supply chain to retail outlets nationwide. PETROAN’s publicity secretary, Joseph Obele, confirmed plans for a meeting to formalize the collaboration.

NNPC Shifts to Dangote Products

The development aligns with the NNPC’s recent announcement to halt fuel importation. Group Chief Executive Officer Mele Kyari stated that the NNPC now sources refined products exclusively from the Dangote Refinery, marking a significant shift towards local production.

A Win for Nigerians

This milestone deal highlights the refinery’s growing role in reshaping Nigeria’s energy landscape. With cheaper fuel prices on the horizon and a steady supply guaranteed, the collaboration between IPMAN and Dangote Refinery offers renewed hope for consumers and businesses alike.

As the ripple effects of this agreement unfold, Nigerians eagerly await the promised relief at fuel stations nationwide.