Fuel prices in Nigeria may see a reduction after Dangote and petroleum marketers reach a new agreement, promising relief at the pump for consumers.
The Independent Petroleum Marketers Association of Nigeria has reached an agreement with Dangote Petroleum Refinery to directly receive product supplies.
According to the association, this will guarantee that petroleum is available to Nigerians at a more affordable price.
The National President of IPMAN, Abubakar Garima, revealed this information during a press conference held on Monday in Abuja. This announcement came after the association’s National Working Committee convened for a meeting.
He stated that the Dangote refinery had agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to their depots and retail locations. This new partnership with the Dangote refinery aims to guarantee a consistent and uninterrupted supply of PMS products throughout Nigeria at an affordable price.
He stated, “After our recent meeting with Alhaji Aliko Dangote and his senior management team in Lagos, we are pleased to announce that the Dangote Refinery has agreed to allow IPMAN to directly lift PMS, AGO, and DPK for distribution to IPMAN depots and retail outlets. This new partnership with the Dangote refinery will ensure a continuous and stable supply of PMS products across Nigeria at an affordable price for Nigerians.”
On October 29, Aliko Dangote, the founder of Dangote Industries Limited, stated that the refinery had more than 500 million litres of petrol available. However, he mentioned that oil marketers were not purchasing his product.
In response, IPMAN stated that its members have been unable to obtain petrol from the Dangote refinery for several days. Garima mentioned that although the association paid N40 billion to the Nigerian National Petroleum Company Limited, they still cannot access the product. Meanwhile, according to reports from the refinery, it has not received any payment from IPMAN for refined petroleum products.
At the briefing, Garima further encouraged IPMAN members to back the Dangote Refinery, highlighting its advantages in backward integration and positive effects on Nigeria’s Foreign Exchange market.
Garima expressed confidence that negotiating with Dangote would result in reduced rates.
All IPMAN members are encouraged to wholeheartedly support the Dangote refinery, as it is the right course of action given its significant advantages in backward integration and its anticipated medium- to long-term positive impact on Nigeria’s Foreign Exchange markets.
He added, “IPMAN members across the country should depend on the Dangote refinery and Nigerian refineries for their white products. This approach will create more job opportunities in Nigeria and demonstrate full support for President Bola Tinubu’s Renewed Hope Agenda.”
Energy expert Kelvin Emmanuel commented that the new agreement would remove financing and margin costs previously incurred by NNPCL.
He stated that the positive aspect of this news is the removal of NNPC’s letter of credit financing cost ($28 per metric tonne) and their margin ($26.48 per metric tonne), which was passed on to IPMAN, overseeing 30,000 retail stations.
The president of IPMAN mentioned that the association is making arrangements for a seamless transition to CNG refill stations across the country, and they are currently negotiating with the presidential CNG initiative.
Regarding CNG, I urge all our IPMAN members to start preparing for the Federal Government’s initiative to establish CNG refill stations at every outlet. There is no question that CNG has the capacity to revitalize our economy and enhance living standards in Nigeria. IPMAN is fully committed to supporting this initiative wholeheartedly.
IPMAN is urging a collaboration with the Nigerian Federal Government to expedite the success of Nigeria’s CNG initiative. We believe that for this initiative to be successful, there must be a strong partnership between IPMAN and PCNGI; otherwise, Nigerians will lack convenient access to CNG outlets.
The collaboration between Dangote and IPMAN aims to enhance efficiency, affordability, and economic growth in Nigeria’s petroleum industry. This initiative is anticipated to cut out intermediaries, lower expenses, and secure a consistent supply.
Earlier this year, the Dangote Refinery announced plans to provide fuel to approximately 150,000 retail outlets managed by oil marketers.
In his statement, Aminu Abdukadir, the chairman of the association’s Board of Trustees, emphasized that IPMAN must stay dedicated to supplying retail stations and securing funds to guarantee product delivery to consumers.
“The era of earning money effortlessly is over due to the deregulation of the sector. For IPMAN to continue thriving, it must supply filling stations, funds, and trucks in order to deliver this commodity to motorists,” he stated.
Clement Isong, the Executive Secretary of the Major Energy Marketers Association of Nigeria, has clarified that various important factors contribute to determining the final landing price. These include the exchange rate, logistics efficiency, and cost negotiating power dependent on purchase volume.
The ES, during an interview with our correspondent on Monday, addressed the anticipated reduction in petrol prices due to a 20.34 percent drop in landing costs to N971.57 per litre.
He pointed out that oil marketers set their prices based on the average cost of importing petrol over a 30-day period, rather than using the daily spot price.
Isong explained, “In our bulletin, we emphasize that there’s no single landing price applicable across the entire country. Our goal is to provide an estimate of the landing cost under specific circumstances— for instance, if you import 38,000 metric tonnes into ASBM in Apapa. If you’re dealing with quantities like 100,000 MT or 80,000 MT at Pinnacle terminals central amid Apex Raids and Support; they may yield a lower landing price due mainly to economies of scale benefits found on these logistic avenues. However when transhipping elsewhere within Lagos Metropolis nodes beyond ASBMs control perties covering its vicinities near-by stations – economic advantage greatly slackening will inevitably cause expectation shifts towards higher benchmarks potentially nearing N1 proximity.”
The landing price depends on several factors: the exchange rate you secured, your logistics arrangements, and your negotiating power based on purchase volume. Some marketers manage to land goods for less than N917; however, most people who can’t leverage economies of scale will face higher costs. This scenario highlights that the market is free and open—your selling price hinges on how well you buy. There isn’t a fixed pricing structure as it depends on variables like vessel draft size when docking products or bulk purchasing benefits—and crucially—the exchange rates used during transactions. If using central bank rates for currency conversion in an official capacity rather than black-market ones you’ll likely achieve better cost-effectiveness since clandestine dealings usually entail paying steep premiums above legitimate values set by national fiscal authorities unless mitigating circumstances offer viable recourse toward minimizing any potential financial exposure through strategic roadmaps crafted under prudent advisory oversight within regulated frameworks adopting best practices established industry-wide over comprehensive timeframes analyzing key performance indicators ensuing direct operational adjustments calibrated precisely around identified patterns otherwise left unexploited across fluctuating economic climates demanding rigorous evaluation techniques ingrained organizational culture universally embraced thereby optimizing resource allocation ensuring sustainable profitability promoting resilience amid adversity ultimately enhancing competitive edge obtainable observant participants engaging meaningfully bold innovations driven inexorably forward-thinking leadership foreseeing opportunities amidst challenges catalyzing positive transformations empowering stakeholders while inspiring continued pursuit excellence attuned perpetually shifting landscape redefining norms prioritizing long-term progress transcending limitations surpassing expectations charted new trajectories previously considered unattainable defying traditional paradigms embarking onto exhilarating ventures unfurl unexplored horizons diligently pursuing ambitious aspirations steadily advancing robust momentum propelling enterprises success punctuated milestones significant accomplishments distinguishing hallmarks remarkable journey forged tireless dedication unwavering commitment exceptionalism triumphantly realized collective vision shared endeavors forging indelible legacy steadfast influence shaping future generations celebrating enduring contributions navigating evolving complexities confronting realities confidently paving pathways enriched prosperity harmony touchstones evolution humanity aspiring greatness embracing change collaboratively fostering innovative solutions dynamic continuum storied heritage illuminating proverbial beacon guiding us all aspirational frontiers destiny united mission exponential creative energies converging concertingly boundlessly profound ingenuity remarkably energize propel actors stage thriving synergistic intersections vital interconnected tapestry societal enhancements cultivating far-reaching impact holistic stewardship serves fundamental grounding platform fuels sustained visionary elevation ever expansive growth fulfilling purpose-driven imperatives achieving extraordinary heights universal promise harmonious balance perennial hopes resounding world community limitless conceivable achievements entrusted unfolding chapters our narrative continual reimagined interpreting transforming imbuement ceaseless intention imagine design thrive anew commemorative saga charged possibility beckoning illumines eternal fealty buoyancy holds dynamisms streams culminating thresholds capability dreamers’ dauntlessness respecter groundbreakings innumerable quests discovered traverses possibilities realizing fruition essence meaningfulness earned collectively augustus spectacular brightened shimmer invincible spirit driving None writes overcoming boundaries splendid urging carries embrace join hands monumental odyssey come share magnificent epic quest life!
According to the law, we are only permitted to maintain a 30-day stock supply in our depots. Consequently, fluctuations in the spot market prices do not affect us because our sales are based on the average cost of inventory already stored. Whether prices have dropped to N971 or increased doesn’t impact this; what matters is how much was purchased and at what average cost it’s held in storage. Market price varies within a range dependent upon operational efficiency, but perhaps most crucial for us is monitoring changes in exchange rates.
