Oil and Gas Industry

IPMAN Pushes Direct Supply From Dangote Refinery As Catalyst To Petrol Price Reduction

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) says the pump price of petrol will decline further when marketers begin to purchase products directly from the Dangote refinery.

Speaking in an interview with NAN, Elijah Shettima, president of IPMAN, said the association’s priority is to ensure its members have direct access to products from the refinery.

He said the arrangement would improve supply and encourage lower pump prices.

“Our major concern is to ensure that independent marketers can purchase products directly from the Dangote Refinery,” Shettima said.

“If importation becomes necessary, marketers should also be allowed to import products independently.”

Shettima said the federal government should continue support for local refining by creating the required enabling environment for existing refineries to operate efficiently while encouraging more private investment in the downstream sector.

Responding to concerns over the slow pace of petrol price reductions, the IPMAN president said pump prices would continue to adjust in line with market conditions.

He said independent marketers have already reduced petrol prices by about N125 per litre nationwide and would continue to pass on lower procurement costs to consumers.

“We are ready to reduce prices as long as we can maintain reasonable margins and remain profitable. Our goal is to make fuel more affordable for consumers,” he said.

Asked whether petrol could sell for N900 per litre, Shettima said the price would depend largely on the cost at which marketers buy products from depot owners.

According to IPMAN’s president, if procurement costs continue to decline, marketers could reduce pump prices further “even below N800 per litre” where market conditions permit.

Shettima described Dangote refinery’s decision to supply products directly to independent marketers as a major milestone for the downstream petroleum sector, expressing confidence that the move would boost competition, lower distribution costs and ultimately benefit consumers.

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