The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that its members will soon be able to purchase Premium Motor Spirit (PMS) directly from Dangote Refinery. This agreement, confirmed on Monday, marks a major shift in Nigeria’s fuel supply chain, with IPMAN’s National Secretary, James Tor, revealing that the new arrangement would drastically lower petrol prices across the country.

The direct sale agreement between IPMAN and Dangote Refinery eliminates the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary. This change follows the first shipment of Dangote’s petrol on September 16, 2024, and is expected to reduce petrol prices at filling stations nationwide.

According to Tor, the deal will make petrol more affordable and widely available, with prices potentially dropping to below N1,150 per litre at IPMAN member stations. He emphasized that the new supply model would not only lower fuel costs but also improve the distribution of petrol throughout Nigeria.

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A spokesperson from Dangote Group, Anthony Chiejina, confirmed the agreement, stating that the refinery will now supply petrol directly to IPMAN, resolving previous concerns over pricing and availability. This follows recent government steps to allow marketers to source fuel directly from Dangote, ending NNPCL’s exclusive off-take of Dangote petrol, as announced by Nigeria’s Minister of Finance, Wale Edun, in October 2024.

The deal comes after growing frustration over high petrol prices, which had surged to between N1,060 and N1,200 per litre in recent months. Prior to the new arrangement, the price of Dangote’s gasoline had been between N960 and N990 per litre for deliveries, leading to some disputes as IPMAN argued that imported fuel was initially cheaper. However, with the shift to local supply from Dangote Refinery, Nigerians can now expect petrol prices to hover around N1,060 per litre or even lower at IPMAN stations.