Financial Energy Review
In a significant development for the Nigerian fuel market, the Dangote Refinery has entered into a supply agreement with the Independent Petroleum Marketers Association of Nigeria (IPMAN) for the delivery of 60 million litres of Premium Motor Spirit (PMS) weekly. The deal, announced on Sunday by IPMAN spokesperson Chinedu Ukadike, is expected to have a positive impact on fuel prices nationwide.
Ukadike said that the agreement, which was first disclosed on November 11, 2024, is already having a visible effect on fuel prices at IPMAN-affiliated filling stations. “We have seen a drop in fuel prices by between N10 and N50, depending on the location,” Ukadike said. “This is a direct result of our partnership with Dangote Refinery.”
The arrangement allows IPMAN members to directly source petrol from Dangote’s refinery, bypassing intermediaries and reducing costs. Ukadike noted that while negotiations are still ongoing, the supply volume could increase based on demand, with 60 million litres being the baseline quantity.
“The price reduction is a result of increased competition and the continued deregulation of the oil sector,” Ukadike added, highlighting the role of market forces in stabilizing prices.
As Nigeria continues to grapple with fluctuating fuel costs, this agreement marks a promising shift toward greater fuel price stability and supply efficiency.
