Business
Dangote and IPMAN Deal Set to Reduce Fuel Prices
The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently announced a breakthrough that could lead to a significant drop in fuel prices across the country.
With an agreement to purchase Premium Motor Spirit (PMS) directly from Dangote Refinery, IPMAN believes this direct sales deal will help drive down the pump price of petrol and improve supply nationwide.
IPMAN’s National Secretary, James Tor, revealed that this arrangement is expected to bypass middlemen, which previously influenced pricing, and instead allow Dangote Refinery to directly supply petrol to IPMAN’s members.
This development came shortly after IPMAN’s President, Abubakar Maigandi, confirmed that Dangote Refinery, Africa’s largest with a production capacity of 650,000 barrels per day, has formally agreed to partner with the association.
Previously, the Nigerian National Petroleum Company Limited (NNPCL) handled the distribution, but the shift towards direct sales with Dangote aims to enhance affordability and availability of petrol throughout Nigeria.
Tor emphasized that the arrangement could reduce petrol prices at IPMAN retail stations to below N1,150 per liter, depending on the price Dangote Refinery sets.
“If the deal goes forward as planned, Nigerians will see a significant reduction in fuel costs at our stations,” Tor remarked.
He added that this agreement would not only lead to cost savings for consumers but also guarantee a steady supply, especially since IPMAN has an extensive network of filling stations nationwide.
He mentioned that IPMAN members have the potential to make Dangote’s fuel accessible across various regions, reducing reliance on imported fuel.
Anthony Chiejina, a spokesperson for Dangote Group, confirmed that the direct sale to IPMAN had been finalized, a move many have been eagerly awaiting.
For weeks, petroleum marketers had been pursuing direct access to Dangote’s petrol supply, especially after the federal government revised its policy to allow multiple participants in the distribution of Dangote’s petrol, moving away from NNPCL’s sole rights as the off-taker.
This policy shift is part of the Naira-for-crude initiative, which aims to stabilize Nigeria’s foreign exchange by allowing oil trade directly in Naira.
Under the leadership of Finance Minister Wale Edun, the committee overseeing this plan gave the green light for marketers to lift petrol directly from Dangote Refinery on October 11, 2024.
Dangote Refinery recently priced its gasoline between N960 and N990 per liter for wholesale buyers, but imported fuel landing costs were reportedly lower in early November, around N971 per liter.
Despite these figures, petrol has been selling at around N1,060 to N1,200 per liter at filling stations, making fuel affordability a concern for many Nigerians.
It has been reported that Economic and Financial Crimes Commission (EFCC), prepares to look into the recent crash of the popular investment platform, CBEX.
It can be recalled that investment platform, CBEX, recently crashed and caused worry for many users. The public to social media to lament about the crash of the platform and cries out due to their losses.
Popular Nigerian blogger, Innocent Tino shares that he will partner with EFCC for a joint investigation of the downfall of CBEX. It was also shared that a total of #1.3 trillion funds have been lost due to the crash.
The Crude Oil Refinery Owners Association of Nigeria (CORAN) has shed light on why Nigerians are still paying high prices for petrol, even though global crude oil prices have dropped sharply.
According to CORAN, the main reasons behind the high cost of Premium Motor Spirit (PMS) include the recent halt of the Naira-for-crude arrangement, the activities of profit-driven middlemen, and the rising exchange rate of the dollar.
Speaking on the matter, CORAN’s spokesperson, Eche Idoko, pointed out that these factors have made it difficult for Nigerians to enjoy any real relief at the pump. Crude oil prices recently dropped to around $64 per barrel for Brent and roughly $59.7 for WTI. This decline followed a new round of tariffs and a surprise production cut announcement by OPEC+.
Despite the global price drop, local fuel prices in Nigeria continue to rise. Idoko explained that middlemen are playing a big role in keeping prices up and preventing local refining from thriving. He also mentioned that the cost of importing refined products, logistics, and foreign exchange challenges all add up to push petrol prices even higher.
At the moment, petrol prices in Nigeria range from N900 to N975 per litre depending on the area. This increase came shortly after several major players in the industry, including partners of the Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), raised their pump prices.
MRS filling stations, a partner of Dangote Refinery, have raised petrol prices to N930 per litre in Lagos and N950 per litre in Abuja.
On Saturday, the MRS station along Kubwa Expressway in Abuja was already selling at the new rate, marking an increase of N70 to N80 per litre from the previous prices of N860 and N880.
A motorist in Abuja reacted to the price hike, saying it was expected after Dangote Refinery announced that it had stopped selling petrol in Naira.
The refinery had revealed on March 19 that it would no longer conduct petrol sales in local currency, a move that has now led to adjustments in pump prices across several stations.
Other filling stations in Abuja have also increased their rates. Empire Filling Station in Gwarimpa, for instance, raised its price to N975 per litre from N945.
Meanwhile, the Nigerian National Petroleum Company Limited (NNPC) maintained its pump price at N880 per litre in Abuja as of Saturday evening.
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