Dangote Refinery commits to 60 million litres of petrol weekly for IPMAN as deregulation lowers fuel prices across Nigeria.

[dropcap]T[/dropcap]he Dangote Petroleum Refinery has announced its commitment to supplying 60 million litres of Premium Motor Spirit (PMS) weekly to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), translating to 240 million litres monthly.

This move comes as petrol prices begin to decline due to increased competition in Nigeria’s deregulated oil market.

Also read: Oil marketers battle Dangote refinery over monopoly fears in Nigerian oil sector

Chinedu Ukadike, IPMAN’s National Publicity Secretary, confirmed the arrangement, stating that independent marketers can lift any quantity allocated by Dangote, with the 60 million litres offer contingent on demand.

He expressed confidence that direct supply from the refinery would begin before the end of November, ensuring more efficient fuel distribution nationwide.

“We are finalising discussions and documentation. Once completed, IPMAN will commence the off-take of products in large volumes, eliminating the inefficiencies of middlemen,” Ukadike explained.

Petrol Prices Drop

Petrol prices in Nigeria have reportedly decreased by up to ₦15 per litre, driven by deregulation and competition among marketers.

Ukadike credited the partnership with Dangote Refinery for this trend, noting, “Prices have dropped significantly, and we expect further reductions as direct supply begins.”

A major oil marketer also attributed the price drop to market competition, emphasising that deregulation has made fixed prices a thing of the past.

Ongoing Importation and Dangote’s Expansion

Despite Dangote’s progress, significant volumes of refined products are still being imported. In 42 days, the Nigerian National Petroleum Company Limited (NNPCL) and other marketers imported over 2 billion litres of petrol and 414,018 metric tonnes of diesel.

Meanwhile, Dangote Refinery is in talks to secure billions of dollars in funding to import crude oil and expand production.

Reports indicate that the refinery, operating below its 650,000 barrels per day capacity, requires additional crude supplies to meet its targets.

Equalisation Fund Concerns

IPMAN has also urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to pay the outstanding ₦10 billion Petroleum Equalisation Fund owed to marketers.

The association stressed that these funds are critical for maintaining operations and addressing outstanding loans.

The partnership between Dangote Refinery and IPMAN marks a significant shift in Nigeria’s fuel supply chain, promising improved efficiency and reduced costs for consumers.

With discussions nearing completion, industry stakeholders anticipate a transformative impact on the country’s downstream sector.