Dangote refinery petrol prices revealed: Experts predict consumer relief

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has disclosed that petrol prices from the Dangote Refinery stand at N940 per litre for shipments transported via ships and N990 per litre for products delivered by trucks.

This announcement comes as over 30,000 IPMAN members prepare to purchase Premium Motor Spirit (PMS) in bulk from the $20 billion refinery situated in Lekki, Lagos.

Speaking on Channels Television, IPMAN President Abubakar Garima shared insights into the recent agreement that enables independent marketers to lift petrol directly from the Dangote Refinery, marking a significant shift that could reshape Nigeria’s petrol supply chain.

“With this arrangement, it’s anticipated that independent marketers may cease petrol importation altogether,” Garima noted.

Pricing Structure and Logistics Garima detailed that the Dangote Refinery has set two distinct pricing structures for marketers based on logistics preferences. “We have two arrangements: marketers can load the product at the gantry for N990 per litre, or they can opt for vessel transportation at N940 per litre,” he said.

He explained that the latter rate accounts for transportation to depots in locations like Port Harcourt, Warri, and Calabar, where vessels are needed due to the absence of a direct loading gantry.

This announcement slightly revises initial pricing estimates, which were reported at N960 and N990 per litre last week.

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Industry analysts view this competitive pricing as a strategic move that could encourage increased uptake and steady supply of PMS across the nation.

Market Impact and Potential Price Reduction According to Garima, the direct access to Dangote’s refinery products is expected to impact pump prices positively. “We foresee a drop in the pump price by about N50 or more, depending on the region,” he added, indicating that consumers could experience notable savings.

Energy economist Dr. Segun Oladele commented on the development, noting that the collaboration between IPMAN and the Dangote Refinery could enhance the stability of PMS supply while cushioning price volatility.

“This deal is pivotal as it opens up a direct supply channel that bypasses some of the logistical bottlenecks previously seen in import-dependent distribution,” Dr. Oladele remarked.

Strategic Shifts in Fuel Supply This agreement comes after the Nigerian National Petroleum Corporation (NNPC) suspended its exclusive plan to act as the sole off-taker of products from the 650,000 barrels-per-day refinery.

The shift grants marketers broader access to directly lift petrol, diesel, and kerosene for their distribution networks.

“The direct lifting arrangement empowers marketers to streamline the distribution process and potentially reduce transportation costs,” said oil and gas analyst, Adebola Lawal.

He further suggested that such partnerships could prompt downstream price moderation and support the government’s broader energy supply objectives.

Industry Outlook The IPMAN-Dangote partnership reflects an evolving landscape in Nigeria’s petroleum sector, where private refineries and independent marketers are assuming greater roles in the supply chain.

As experts continue to monitor these developments, the focus will remain on whether this collaboration leads to sustained price relief for consumers amid broader economic challenges.