Fuel price set to reduce in Nigeria as IPMAN, Dangote Refinery seal direct sales agreement

 The Independent Petroleum Marketers Association of Nigeria (IPMAN) has announced that fuel prices are expected to drop significantly following a new agreement for direct sales of petrol from the Dangote Refinery. This development is set to eliminate intermediaries, lowering fuel costs and improving supply across the country.

IPMAN’s National Secretary, James Tor, confirmed the arrangement during an interview on Monday. He stated that Dangote Refinery would begin supplying Premium Motor Spirit (PMS) directly to IPMAN members, bypassing the Nigerian National Petroleum Company Limited (NNPCL), which had previously managed distribution since the refinery’s first petrol production in September 2024.

According to Tor, this agreement will lead to a substantial reduction in fuel prices, potentially bringing prices at IPMAN outlets below ₦1,150 per liter. “With this direct access, we expect easier availability of fuel and a much-needed price reduction nationwide,” he said. This agreement also signals a shift away from imported fuel, as local refineries increasingly fulfill demand.

The Dangote Group spokesperson, Anthony Chiejina, confirmed the direct sale agreement with IPMAN, which follows recent government decisions to allow more flexibility in fuel distribution. The government’s Naira-for-crude initiative, led by Finance Minister Wale Edun, has also opened up the local market to more direct purchasing agreements.

Currently, Dangote Refinery offers petrol at ₦960 to ₦990 per liter for bulk sales, and IPMAN’s involvement is expected to stabilize retail prices between ₦1,060 and ₦1,150 per liter. This marks a shift from recent price spikes, with fuel costs increasing from ₦617 per liter in August to between ₦1,060 and ₦1,200, contributing to a rise in inflation.

The new arrangement is anticipated to provide Nigerian consumers with more affordable and accessible fuel in the coming weeks, though final pricing details will be confirmed as the agreement is implemented.