Nigerian Marketers Eye Cheaper Fuel with Direct Dangote Deals

The Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have expressed optimism about reducing petrol prices.

This comes as they prepare to purchase fuel directly from the Dangote Refinery, bypassing the Nigerian National Petroleum Company Limited (NNPCL).

The Federal Government has recently approved this direct purchase arrangement, effectively ending NNPCL's exclusive role as the sole buyer of petrol from the Dangote Refinery.

Chinedu Ukadike, spokesperson for IPMAN, highlighted the potential benefits of this shift, stating, "Our petrol price will be cheaper than that of NNPC Retail price if Dangote Refinery sells petrol to us. Because we are buying from the same source, the fee NNPC puts on top before selling to marketers will be cut off."

Currently, petrol prices have soared to N1030 per litre in Abuja, following a series of hikes since President Bola Ahmed Tinubu's removal of fuel subsidies last year. The direct purchase from Dangote is seen as a lifeline to reduce these costs, as marketers manage 70% of the country's filling stations.

However, challenges remain. PETROAN President Billy Gillis-Harry noted that the Dangote Refinery has yet to provide a price template or respond to their request for a direct purchase agreement. "They expect us to take our trucks to the refinery plant without knowing the price of petrol?" he questioned, emphasizing the need for clarity before proceeding.