Petrol price could drop below N800 as IPMAN signs direct deal with Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has said petrol prices could fall below N800 per litre following a new direct purchase agreement with the Dangote Petroleum Refinery. The deal allows independent marketers to buy products directly from the refinery, bypassing private depot owners and cutting supply costs.

Direct purchase deal a game changer

Abubakar Maigandi Shettima, national president of IPMAN, announced the development in Abuja on Monday, July 6. He described Dangote Refinery's decision to sell directly to independent marketers as a paradigm shift in the downstream petroleum sector. Shettima said independent marketers will be able to crash petrol pump prices to below N900 once they start purchasing directly from the refinery.

“At any time when there is a reduction of price, we are ready to reduce the price to even below N800, not even N900,” Shettima said. “We (independent marketers) are the people that manage over 70% of retail stations in Nigeria. We previously purchased products through private depots.”

Shettima assured Nigerians that marketers are ready to crash petrol prices at the required rate, noting that supply costs will drop significantly. He added that marketers have already reduced the pump price of petrol by N125 per litre in many areas due to lower supply costs.

Government pushes for lower pump prices

At the meeting, Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stressed that lower crude oil prices in the international market should translate to lower pump prices for Nigerians. He warned that maintaining high fuel prices when replacement costs had dropped was unhealthy and would hinder the nation's efforts to fight inflation.

Rabiu Umar, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the meeting was called to ensure that the benefits of low international crude oil prices are passed to consumers. “Deregulation was meant to promote competition and efficiency, not excessive price increases. The reduction in the cost of replacement products must be passed to Nigerians in a timely and transparent manner,” Umar said.

NNPC also cuts prices

In a related development, petrol prices at filling stations operated by the Nigerian National Petroleum Company Limited (NNPC Limited) in Lagos have been adjusted downward again. Data showed that NNPC retail stations across the country are now selling between N1,170 and N1,395 per litre, depending on location. Lagos and Ogun recorded the lowest pump price at N1,170 per litre, down from N1,210, while Yobe recorded the highest at N1,395 per litre.

For Nigerian consumers, the direct purchase deal between IPMAN and Dangote Refinery signals potential relief at the pump. If independent marketers, who control over 70% of retail stations, can bring prices below N800, it would mark a significant drop from current levels and ease pressure on household budgets.