Petrol price may drop below N800 as IPMAN confirms direct supply from Dangote Refinery

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says petrol prices could fall below N800 per litre once its members start buying fuel directly from the Dangote Refinery. The association believes the move will cut out middlemen, boost competition, and reduce distribution costs.

IPMAN President Elijah Shettima told the News Agency of Nigeria (NAN) that securing direct access to refined products from the Dangote Refinery is the association's top priority. He said removing intermediaries from the supply chain will improve product availability and create room for lower pump prices across the country.

Direct supply will cut costs and improve availability

Shettima said: “Our major concern is to ensure that independent marketers can purchase products directly from the Dangote Refinery.” He added that marketers should also retain the option of importing petroleum products independently whenever the need arises.

He described the refinery's decision to supply products directly to independent marketers as a significant development for the sector. According to him, the arrangement is expected to increase competition, reduce distribution costs, and ultimately deliver better value to consumers through lower fuel prices.

Marketers have already cut prices by N125 per litre

Addressing concerns about the pace of recent price reductions, Shettima noted that petrol prices would continue to reflect prevailing market conditions. He revealed that independent marketers have already reduced petrol prices by approximately N125 per litre nationwide.

Shettima pledged that marketers would pass on any further savings in procurement costs to consumers, provided businesses remain profitable. He said: “We are ready to reduce prices as long as we can maintain reasonable margins and remain profitable. Our goal is to make fuel more affordable for consumers.”

Below N800 per litre is possible

On the possibility of petrol selling for N900 per litre, Shettima explained that the final pump price would depend largely on the cost at which marketers purchase products from depot owners. He added that if acquisition costs continue to decline, fuel could even sell for below N800 per litre in areas where market conditions make such pricing feasible.

Shettima also urged the Federal Government to continue supporting local refining by providing an enabling environment for refineries to operate efficiently while encouraging more private investment in the downstream petroleum industry.

For Nigerian consumers and businesses, a sustained drop in petrol prices below N800 per litre would ease transportation costs and reduce inflationary pressure on goods and services across the economy.