The Independent Petroleum Marketers Association of Nigeria (IPMAN) has revealed plans for an upcoming meeting with Dangote Refinery to discuss the possibility of procuring Premium Motor Spirit (PMS) directly from the facility. Commonly known as petrol or fuel, this move is expected to potentially lead to significant price reductions for consumers.
Speaking on behalf of IPMAN, Chief Chinedu Ukadike expressed optimism regarding the direct lifting of petrol from Dangote Refinery. He emphasized that members of IPMAN are looking forward to the opportunity, which could reshape the distribution dynamics within the Nigerian oil and gas sector. According to Ukadike, this collaboration could address some of the current challenges in petrol distribution across the nation, despite the recent commencement of petrol distribution from the Dangote facility.
Addressing Distribution Challenges in the Nigerian Oil Industry
Ukadike further highlighted that efficient petrol distribution remains a major concern in Nigeria’s oil industry. Even with Dangote’s new distribution operations, obstacles persist in ensuring widespread availability and fair pricing of fuel across the country.
In his statement, Ukadike mentioned the upcoming discussions between Dangote Refinery and IPMAN, slated for this week. He expressed the association’s optimism about Dangote’s evolving distribution strategy, which now includes engagement with various stakeholders. “There is a meeting scheduled for this week between Dangote and IPMAN. We are happy that Dangote has set a new course by involving other stakeholders in the distribution of its products,” he said.
Expanding Petrol Distribution Beyond Major Marketers
At present, Dangote Refinery is primarily distributing petrol to major marketers across Nigeria. However, IPMAN hopes that independent marketers will soon be included in this distribution network. “It is now distributing to major marketers, and we are hopeful that, with time, it will start distributing to independent marketers as well,” Ukadike added.
This shift is particularly important as fuel prices across the country continue to fluctuate. Krain Naija News reports that the price of petrol at retail outlets, including those run by the Nigerian National Petroleum Company Limited (NNPC) and independent filling stations, currently ranges from ₦950 to ₦1,100 per litre, depending on the region. The variation in fuel prices is largely attributed to ongoing supply chain adjustments following Dangote’s entrance into the market.
CORAN Calls for Stable Exchange Rate to Lower Petrol Prices
Amidst these developments, the Crude Oil Refiners Association of Nigeria (CORAN) has made a call for government intervention to help stabilize fuel prices. CORAN is urging the Nigerian government to implement a fixed foreign exchange rate of ₦1000 per dollar. The association believes that this measure would help reduce the cost of petrol from Dangote Refinery to below ₦600 per litre, providing much-needed relief to Nigerian consumers.
As the oil and gas sector navigates these ongoing changes, the upcoming meeting between IPMAN and Dangote Refinery could mark a significant milestone in Nigeria’s fuel distribution landscape. The inclusion of independent marketers in the distribution process, alongside potential price reductions, offers hope for more affordable and accessible fuel across the country. Meanwhile, calls from CORAN for a fixed foreign exchange rate further highlight the need for government action to stabilize fuel prices and support economic growth.