Babatunji Wusu –
- Potential Price Reduction: Marketers expect lower petrol prices once sourcing directly from Dangote Refinery.
- Government Approval: Federal government permits direct procurement from Dangote.
- IPMAN’s Market Share: IPMAN represents about 70% of filling stations, increasing their pricing power.
- Awaiting Price Template: Both IPMAN and PETROAN are waiting for pricing information from Dangote before proceeding.
- Concerns Over Mobilization: Marketers express uncertainty about transporting products without established pricing.
Petroleum marketers in Nigeria have indicated that a reduction in petrol prices may be on the horizon as they prepare to source the product directly from Dangote Refinery. This shift is anticipated to eliminate costs associated with using the Nigerian National Petroleum Company Limited (NNPCL) as an intermediary, allowing marketers to offer lower prices to consumers.
The federal government has authorized marketers to procure petroleum products directly from Dangote, a development confirmed by Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN). In an interview with Daily Post, Ukadike noted that once IPMAN members begin receiving fuel directly from Dangote, prices could fall below the current NNPCL retail price of ₦1030 per litre in Abuja.
However, Ukadike did not provide a specific price point, emphasizing that they are still awaiting the price template from Dangote Refinery. He stated, “We are still waiting on Dangote Refinery regarding the direct sale of petrol to our members and the pricing details. Our petrol price will be cheaper than that of NNPC Retail if Dangote Refinery sells to us, as we will eliminate the additional fees charged by NNPC.”
He added that IPMAN controls approximately 70 percent of filling stations nationwide and emphasized the importance of clear pricing before mobilizing operations. A meeting with Dangote Refinery is expected soon to finalize these details.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association (PETROAN), echoed Ukadike’s sentiments. He noted that they are also waiting for a price template, expressing concerns over mobilizing trucks to the refinery without knowing the cost of the products. “They expect us to take our trucks to the refinery without knowing the price of petrol?” he remarked, highlighting the uncertainty surrounding the situation.
