Oil Marketers Predict Petrol Price Drop with Direct Supply from Dangote Refinery

Oil marketers have indicated that petrol prices could soon decrease as they initiate direct product lifting from the Dangote Refinery.

This announcement comes amid ongoing fuel scarcity and rising petrol costs, which have reached ₦950 per litre in Lagos and ₦1,000 per litre in northern regions.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), discussed the matter on Channels Television, emphasizing that establishing direct supply agreements with the Dangote Refinery is critical to stabilizing prices.

He remarked, “It is just very simple. It shows that the liberalisation of the market is on course. Immediately after we discuss and commence direct lifting of product from Dangote, the issue of pricing and differential in pricing will be gone.”

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Ukadike highlighted the essential role IPMAN plays in the distribution network, asserting that the association operates about 85 percent of filling stations across Nigeria.

He stressed that direct dealings with the refinery could foster competition, leading to reduced prices. “If IPMAN becomes independent, prices will drop. Because it will give us the opportunity for possible competition,” he stated.

Notably, he cited previous success in price stabilization following IPMAN’s engagement with the Dangote Refinery for diesel supplies, where costs for Automotive Gas Oil (AGO) plummeted from ₦1,600 to between ₦1,000 and ₦1,100 per litre.