The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced a landmark agreement with Dangote Petroleum Refinery to directly lift petroleum products. According to IPMAN’s National President, Abubakar Garima, this partnership will make petrol (PMS), diesel (AGO), and kerosene (DPK) readily available and more affordable for Nigerians, potentially stabilizing prices amidst rising costs.
At a press briefing in Abuja, Garima highlighted that this arrangement, a result of meetings between IPMAN and Aliko Dangote’s management team, positions IPMAN to supply products directly from the Dangote refinery to its depots and retail stations nationwide, avoiding middlemen and reducing associated costs.
IPMAN and Dangote: Strengthening Nigeria’s Petroleum Sector
The partnership is expected to streamline petroleum supply, boost efficiency, and align with President Bola Tinubu’s Renewed Hope Agenda, fostering economic growth and stability. Garima called on IPMAN members to fully support the Dangote refinery, emphasizing the economic advantages of backward integration, improved job opportunities, and potential positive impacts on Nigeria’s foreign exchange markets.
“IPMAN members nationwide should rely on Dangote and Nigerian refineries for petroleum supplies,” Garima stated, affirming IPMAN’s commitment to strengthening the Compressed Natural Gas (CNG) initiative. This CNG initiative aligns with the Federal Government’s plan to establish CNG refill stations across the nation, which Garima believes will revitalize the economy.
Industry Response and Pricing Insights
Energy expert Kelvin Emmanuel noted that this direct-supply agreement could cut IPMAN’s previous financing costs, making petroleum more affordable for end consumers. With reduced Letter of Credit financing costs and the elimination of NNPCL’s margin costs, IPMAN’s 30,000 retail stations will likely benefit from cost savings, translating to more competitive market prices.
The Major Energy Marketers Association of Nigeria (MEMAN) added that landing prices for petroleum products fluctuate based on various factors, including exchange rates, logistics, and economies of scale. MEMAN’s Executive Secretary, Clement Isong, explained that while some marketers may benefit from lower landing prices, others will face regional variations, with pricing pegged to average import costs rather than daily spot prices.
The recent move by IPMAN and Dangote to reduce dependence on external fuel sources and move toward self-reliance may stabilize supply while offering Nigerians lower prices at the pump.
Key Takeaways
This direct-lifting agreement:
- Promises consistent and affordable petroleum supply across Nigeria.
- Supports CNG infrastructure and the Federal Government’s energy goals.
- Bolsters economic self-reliance, with potential job creation and foreign exchange benefits.
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