The Independent Petroleum Marketers Association of Nigeria (IPMAN) has entered into a significant partnership with Dangote Petroleum Refinery to facilitate direct lifting of petroleum products, a move expected to reduce petrol prices across the country. The announcement, made by IPMAN President Abubakar Garima in Abuja, follows a strategic meeting of the association’s National Working Committee. This collaboration aims to streamline distribution, cut out middlemen, and ensure Nigerians have access to more affordable petroleum products.
Direct Supply Chain to Boost Petrol Availability
According to Garima, the agreement enables IPMAN to directly lift Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual-Purpose Kerosene (DPK) from the Dangote refinery for distribution to IPMAN depots and retail outlets. This direct supply chain is anticipated to reduce disruptions and maintain a steady fuel flow across Nigeria. “This arrangement with Dangote will ensure a continuous supply of PMS nationwide, keeping rates affordable for consumers,” Garima said.
IPMAN Responds to Prior Supply Challenges
This development comes on the heels of concerns raised by IPMAN regarding their inability to secure petrol from Dangote’s refinery, despite prior payments made to the Nigerian National Petroleum Company Limited (NNPCL). Garima disclosed that IPMAN paid N40 billion to NNPCL yet faced challenges in product acquisition. However, Dangote’s management stated that no such payments had been received. This new agreement with Dangote aims to resolve these challenges, ensuring smoother operations and reliable supply.
Call for IPMAN Members to Support Refinery Initiatives
Garima has urged IPMAN members to support Dangote Refinery, citing the partnership’s potential benefits, including job creation and positive impacts on Nigeria’s foreign exchange market. He emphasised the importance of backing Dangote’s backward integration strategy, which reduces Nigeria’s dependency on imports. This aligns with President Bola Tinubu’s Renewed Hope Agenda, aiming for economic resilience and growth.
Transition to Compressed Natural Gas (CNG) Stations
Additionally, IPMAN is preparing for a nationwide transition to Compressed Natural Gas (CNG) stations, in alignment with the federal government’s sustainability goals. Garima highlighted that IPMAN’s readiness to support CNG initiatives could revitalise Nigeria’s economy. He called for a strengthened partnership between IPMAN and the Federal Government to ensure the success of this initiative.
Economic Impact and the Future of Fuel Pricing
Energy expert Kelvin Emmanuel noted that this partnership would eliminate NNPCL’s financing costs, leading to reduced pump prices. The deal is projected to significantly impact the nation’s petroleum industry, enhancing efficiency and reducing fuel costs for Nigerians. As IPMAN and Dangote move forward, this collaboration is anticipated to bring stability, affordability, and growth to the sector.
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