IPMAN, Dangote reach agreement to lift petrol directly

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has entered into a pivotal agreement with Dangote Refinery to directly lift and distribute refined petroleum products, including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual Purpose Kerosene (DPK).

Announced by IPMAN’s National President, Abubakar Garima, on Monday after a meeting of the Association’s National Working Committee in Abuja, this partnership is poised to bolster Nigeria’s fuel distribution infrastructure, addressing both supply chain efficiency and cost-effectiveness.

Garima shared that IPMAN’s leadership had met with Aliko Dangote, Chairman of the Dangote Group, and his executive team in Lagos to negotiate terms aimed at easing supply challenges.

According to Garima, “Dangote Refinery has agreed to supply IPMAN with PMS, AGO, and DPK directly for distribution to our depots and retail outlets.” This direct supply mechanism is expected to streamline fuel distribution nationwide and potentially lower the cost of fuel, relieving some of the pressures on Nigerian consumers who have faced fuel price volatility amid fluctuating global oil prices and currency challenges.

Nigeria’s reliance on fuel imports has traditionally been a significant strain on the country’s foreign exchange reserves, with imported fuel contributing to exchange rate pressures. By securing direct access to domestically refined products, IPMAN is set to reduce dependence on foreign-imported fuel, helping to stabilise the exchange rate.

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Garima urged IPMAN members to support the Dangote Refinery in order to reap the benefits of “backward integration”—a system that prioritises local production over import reliance, creating a stronger and more resilient fuel market in Nigeria.

The collaboration is anticipated to generate widespread positive impacts, including enhanced product availability, reduced import expenses, and greater price stability for Nigerian consumers. Experts predict that as IPMAN accesses Dangote’s production more seamlessly, there will be improved fuel supply stability, particularly in areas traditionally affected by distribution delays.

The Dangote Refinery, with a refining capacity of 650,000 barrels per day, is positioned as a game-changer in Nigeria’s petroleum sector, potentially reducing fuel scarcity and promoting job creation. Garima noted that this partnership offers a promising solution to fuel distribution challenges by channelling products directly from the refinery to IPMAN’s extensive network of depots and retail outlets across Nigeria.

The IPMAN-Dangote Refinery agreement represents a milestone in Nigeria’s ongoing efforts to build a self-sufficient, efficient, and affordable fuel distribution network. As IPMAN members rally behind the Dangote Refinery’s domestic supply, the partnership signals a potential shift towards sustainable fuel practices, contributing to Nigeria’s economic resilience and energy security.