The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed plans to reduce the price of Premium Motor Spirit (petrol) by ₦50 per litre. This announcement is part of a recent agreement between IPMAN and Dangote Refinery, aimed at providing some relief to Nigerian consumers grappling with fluctuating fuel costs.
Details of the New Agreement
In an interview with Channels Television on Tuesday, IPMAN’s National President, Abubakar Maigandi, confirmed that Dangote Refinery has proposed new pricing arrangements for fuel sales. Under this new framework:
- Depot purchases will be priced at ₦940 per litre.
- Truck deliveries to various depots will be priced at ₦990 per litre.
This shift in pricing is expected to lower the price of petrol at filling stations across the country. Currently, petrol prices range between ₦1,150 and ₦1,200 per litre, depending on the location. Maigandi noted that the new agreement with Dangote could see petrol prices drop to around ₦1,150 per litre or even lower in some areas.
Expected Impact on Petrol Prices
The adjustment in fuel prices is anticipated to ease the burden on consumers, particularly in regions where petrol costs are highest. For example:
- In Maiduguri, where the current price of petrol is ₦1,200 per litre, the new agreement could result in a price decrease to ₦1,150, representing a reduction of ₦50 per litre.
Maigandi mentioned that the new deal with Dangote Refinery has introduced two options for IPMAN members:
- Loading vessels for transport to IPMAN’s depots at ₦940 per litre.
- Direct supply to depots at a price of ₦990 per litre.
Background and Context
This recent development comes after Dangote Refinery agreed to sell petrol directly to IPMAN members, ending the Nigerian National Petroleum Company’s (NNPC) exclusive purchasing arrangement for Dangote’s gasoline. With the direct agreement now in place, it is expected that the steady supply of fuel from the refinery will stabilize prices and ensure greater availability across the country.
The decision to sell directly to IPMAN members at the newly established rates could signify a significant shift in Nigeria’s fuel distribution landscape, providing competition that could benefit consumers in the long run.
Implications for the Nigerian Fuel Market
As Nigeria continues to navigate fuel price fluctuations and broader economic challenges, the collaboration between IPMAN and Dangote Refinery marks a crucial step toward addressing supply and cost issues. By cutting out intermediaries and facilitating direct purchases, the new pricing structure could lead to more predictable and possibly lower fuel costs, mitigating some of the pressures on Nigerian consumers.
The reduction is expected to take effect soon, offering some much-needed relief amidst the country’s ongoing energy sector challenges.
News Editor