Fuel Pump Price May Fall As Dangote Agrees To Deal With Oil Marketers

• Nigerians to expect new fuel pump price as marketers prepare to buy petrol direct from Dangote refinery
• The agreement, which the IPMAN chairman announced, will end the intermediary role of NNPC Limited
• The price of fuel at gas stations throughout the country is from approximately 1,000 lei per liter to 1,300 lei per liter.

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism with an in-depth knowledge of Nigerian. economygeneral market actions and trends.

The Independent Oil The Marketers Association of Nigeria (IPMAN) has agreed a deal with Dangote Petroleum Refinery to directly pick up petroleum products from the facility.

The agreement was announced by the National President of IPMAN, Abubakar Garima, announced this at a press briefing on Monday in Abujafollowing a meeting of the association’s National Working Committee.

Punch reports that IPMAN said the association would ensure the availability of oil to Nigerians at a cheaper rate.

The price of fuel at gas stations throughout the country is around 1,000 lei per liter to 1,300 lei per liter.

Details of Dangote’s deal with IPMAN

Garima further disclosed that with the agreement, IPMAN members will directly pick up PMS, AGO and DPK for onward supply to IPMAN warehouses and outlets.

His words:

“Following our recent meeting with Alhaji Aliko Dangote and his management team in Lagos, we are pleased to announce that Dangote Refinery has granted permission to IPMAN to directly pick up PMS, AGO and DPK for distribution to IPMAN warehouses and outlets with the detail.

“This new arrangement with Dangote Refinery will ensure a continuous and reliable supply of PMS products throughout Nigeria at affordable prices for all Nigerians.”

On pricing, Garima expressed confidence that negotiations with Dangote will result in lower quotas.

He added:

“All IPMAN members are encouraged to fully support the Dangote Refinery as it is the right course of action given the significant benefits of backward integration and the long-term positive impact it will have on Nigeria’s foreign exchange markets.

IPMAN members across the country should depend on Dangote Refinery and other Nigerian refineries for their white products. This will not only create more job opportunities in Nigeria but will also demonstrate strong support for President Bola Tinubu’s Renewed Hope Agenda.”

The expert speaks

Reacting to marketers, the Dangote deal, Energy expert Kelvin Emmanuel explained that NNPCL will no longer incur margin costs.

He said:

“What is particularly encouraging about this development is that the financing cost of NNPC’s letter of credit ($28 per metric ton) which was previously passed on to IPMAN – responsible for 30,000 retail stations – along with their margin ($26.48 per metric ton), will now be removed.”

NNPC hikes petrol price

earlier, Legit.ng reported that the Nigerian National Petroleum Company Limited (NNPC) has raised the value and the price of gasoline.

The development came as Aliko Dangote, chairman of the Dangote Group, said petrol was idle at his refinery without patronage.

Source: Legit.ng