Nigerian petroleum marketers are increasingly aligning with the Dangote Refinery in response to a rise in depot fuel prices.
- Nigerian petroleum marketers are turning to Dangote Petroleum Refinery due to rising depot fuel prices
- Depot price of Premium Motor Spirit (PMS) rose by 4.7% due to global crude oil cost surge to $80 per barrel
- IPMAN authorized its members to buy directly from Dangote Refinery to avoid reliance on depot owners
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has indicated that this shift to the Dangote refinery is partly driven by the recent hike in the depot price of Premium Motor Spirit (PMS), which increased from ₦907 to ₦950 per liter—a 4.7% rise.
This adjustment in the depot price corresponds to a broader global trend, as the cost of crude oil surged to $80 per barrel from $73 per barrel within a week.
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The volatile crude oil market, influenced by supply dynamics and geopolitical factors, continues to affect fuel prices globally, with downstream impacts on Nigeria’s petroleum sector.
Independent marketers confirm deal
IPMAN’s Public Relations Officer, Chinedu Ukadike, confirmed that the organization has authorized its members to purchase petroleum products directly from Dangote Refinery.
Ukadike, in a discussion with The Vanguard, said that relying on depot owners for products is no longer viable, especially when direct purchases from the refinery was possible.
“The minimum quantity to buy from Dangote Refinery is two million liters at N909 per liter. We can also buy from MRS, which also distributes Dangote refinery petrol.” he added.
This arrangement follows an agreement signed between Dangote Petroleum Refinery and IPMAN in November last year.
As part of the agreement, the refinery will supply 60 million liters of Premium Motor Spirit (PMS), commonly known as petrol, to IPMAN members every week.
This arrangement aimed to provide IPMAN with up to 240 million liters of petrol monthly, significantly boosting the association’s distribution capacity.
Dangote addresses fuel challenge
The Dangote Refinery has reaffirmed its capability to meet the fuel needs of Nigerian consumers, positioning itself as a reliable and sufficient supplier in the domestic petroleum market.
This assertion counters claims by some marketers that supplemental imports were necessary to address fuel shortages.
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In October 2024, the refinery announced a significant stockpile of 500 million liters of petrol, emphasizing its preparedness to cater to national demand.
Aliko Dangote, the founder of the refinery, had addressed marketers and the Nigerian National Petroleum Corporation (NNPC), urging them to cease fuel imports and rely on the refinery’s robust supply.
“I expect the NNPC and marketers to stop importing. They should come and collect; we have everything they need,” he stated, showcasing confidence in the refinery’s production and storage capacity.
