Independent Petroleum Marketers Association of Nigeria (IPMAN) has commenced direct premium Motor Spirit (PMS) from the Dangote Refinery, following an agreement made last month. The refinery, located in the Lekki Free Trade Zone, Lagos, began supplying fuel to IPMAN members in late November, with the first products being loaded through MRS Oil. This marks the beginning of a shift towards direct transactions, eliminating intermediaries and improving market efficiency. IPMAN emphasized that the direct purchase agreement is a key move to stabilize the market and reduce the influence of middlemen.
The move comes after a series of challenges with the initial supply chain setup, where the Nigerian National Petroleum Company (NNPC) was the sole off-taker of Dangote fuel. This arrangement failed to meet the demands of independent marketers, prompting the Federal Government to allow marketers to purchase fuel directly from the refinery. The agreement is expected to enhance competition and lead to better pricing for consumers. IPMAN has noted a decrease in PMS prices from N990 to N970 per litre, which has already spurred increased demand for the product.
IPMAN’s deal with Dangote Refinery includes the direct supply of various petroleum products such as PMS, AGO, and DPK, bypassing middlemen and ensuring more efficient distribution. This move is expected to strengthen the Nigerian economy by providing more competitive pricing and improving fuel accessibility. In addition, the association has made it clear that it will not purchase products from the Port Harcourt refinery if it continues to sell at higher prices, underlining their commitment to securing affordable fuel for the market.
