The Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced direct loading of Premium Motor Spirit (PMS) from the $20 billion Dangote Petroleum Refinery, marking a significant shift in Nigeria’s fuel supply chain. This development follows an agreement between IPMAN and Dangote Refinery in November, aimed at eliminating middlemen and reducing PMS prices in the local market.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, confirmed the direct purchase in a statement on Sunday, noting that independent marketers have already lifted millions of liters of petrol from the refinery, located in Lagos’ Lekki Free Trade Zone.
“There is a pre-arrangement we had. Dangote Refinery made some products available to us through MRS Oil. We have started loading gradually since late November,” Ukadike said. He emphasized that this arrangement is not a middleman setup but a transitional process leading to full direct purchase operations.
The refinery’s decision to reduce PMS prices from N990 to N970 per liter has fueled increased demand and strengthened the local market, with analysts attributing the price drop to the removal of intermediaries. “The era of middlemen is gone. Marketers can now access Dangote Refinery directly, ensuring fair pricing,” Ukadike added.
The Federal Government’s intervention in October, which allowed marketers to bypass the Nigerian National Petroleum Corporation Limited (NNPCL) as the sole off-taker, paved the way for this landmark deal. Finance Minister Wale Edun had stated that direct purchases from refineries would promote competition and improve market efficiency.
This development follows Dangote Refinery’s commencement of petrol sales on September 15, 2024, and IPMAN’s announcement in November that the refinery would supply PMS, AGO, and DPK directly to its members.
Meanwhile, data from the National Bureau of Statistics (NBS) revealed that Nigeria imported N3.32 trillion worth of PMS and N1.33 trillion worth of diesel in Q3 2024. During the same period, crude oil exports accounted for N13.40 trillion, representing 65.44% of total exports, while non-oil exports contributed N2.5 trillion.
With this direct purchase arrangement, industry stakeholders anticipate reduced costs, increased efficiency, and improved fuel availability for Nigerian consumers.
