THERE is hope for price moderation as the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached a landmark agreement with Dangote Refinery, directing its members to exclusively source Premium Motor Spirit (PMS) from the refinery to help bring down fuel prices.
IPMAN’s National President, Abubakar Maigandi, announced the agreement on Monday, November 11, during a press conference in Abuja, following a National Working Committee meeting.
This latest development halted IPMAN’s previous plans to import fuel independently and is expected to stabilise the fuel supply and lower costs for Nigerians.
Previously, both IPMAN and the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) had suggested that competition, including importing fuel themselves, would reduce prices.
However, with the new partnership, IPMAN intended to work directly with Dangote Refinery, streamlining the fuel supply chain and potentially driving down costs by reducing dependence on imports.
PETROAN’s National Public Relations Officer, Joseph Obele, had earlier stated that a competitive, deregulated environment would help bring down fuel prices.
Obele disclosed that the group had incorporated a business unit that would enable it to bring in petrol before December.
It disputed the allegation by Dangote Refinery that the marketers intend to import substandard products at a cheaper rate, saying the claims were not surprising.
Also, the National Assistant Secretary of IPMAN, Yakubu Suleiman, expressed surprise that Dangote had called on IPMAN members to support the refinery, despite previous unsuccessful attempts to foster a working relationship
The refinery, however, maintained that its fuel prices align with international benchmarks, though they are currently higher than the price of imported products.
With the agreement, IPMAN members will source PMS, Automotive Gas Oil (AGO or diesel), and Dual Purpose Kerosene (DPK) directly from Dangote Refinery, supplying IPMAN depots and retail outlets across Nigeria.
“The Dangote Refinery has obliged IPMAN to lift PMS, AGO, and DPK directly for onward supply to IPMAN depots and retail outlets.”
“This arrangement will ensure steady and seamless supply of petroleum products all over Nigeria at an affordable rate for all Nigerians.”
He commended Dangote for fostering this collaboration, highlighting the long-term benefits of supporting local refineries.
Maigandi encouraged IPMAN members to back the initiative, emphasizing that this aligns with the government’s economic goals and could positively impact Nigeria’s foreign exchange reserves.
“All IPMAN members should fully support the Dangote Refinery, as it is the ideal thing to do considering the monumental benefits of backwards integration as a medium for the long-term impact it will have on the foreign exchange market in Nigeria,” Maigandi continued.
“IPMAN members should rely on Dangote Refinery and other Nigerian refineries for products, as this will translate to more job opportunities in Nigeria as well as signify total support for President Bola Ahmed Tinubu’s renewed agenda.”
Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: umustapha@icirnigeria.com. He tweets @UsmanMustapha_M